Decision likely soon, states will be free to adopt one or more of the models suggested
New Delhi: The Central government is looking at spending a minimum of Rs 200-250 billion initially along with the states in ensuring that farmers get the benefit of Minimum Support Price (MSP) either through direct procurement of goods or a system of Price Deficiency Payment on the lines of Madhya Pradesh’s Bhawaantar Bhugtan Model.
Officials said though a detailed cabinet note is being prepared on the finer details of the share in which Centre and states bear the financial burden, but one thing is increasingly looking eminent is that government won’t impose any one of the procurement models, but instead leave it to the states to either go for direct procurement called Market Assurance Scheme (MAS), Price Deficiency Payment (PDPS) or even Procurement By Private Agencies on behalf of the government.
“The financial burden was earlier estimated to be around Rs 110-120 billion but after detailed discussions with a host of stakeholders including states, this looks inadequate. In any case, finances will never be a constraint for implementing the programme as it is now a stated policy of the government as announced in Budget 2018-19,” a senior official said.
He said the high-powered panel of ministers formed under Home Minister Rajnath Singh which has representatives from all major ministries including agriculture, food etc has also looked into the various options.
“Though the Budget hasn’t made any specific provision for a scheme to ensure that maximum farmers get benefit of MSP, but finances can be arranged through supplementary demand for grants later during the year,” the official added.
NITI Aayog has suggested three models for procurement of farm products under the Minimum Support Price (MSP) mechanism, but the Centre isn’t keen to adopt one system nationally and might leave it to the states to choose any of the three.
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