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Govt to link new procurement mechanism with states

NEW DELHI: The Centre is likely to link a new procurement mechanism - which is being fine-tuned for final approval - with the states’ efforts to go for agricultural market reforms. The new mechanism will ensure minimum support price (MSP) of all notified crops to farmers.

If this proposal is approved, the states won’t be able to avail the Price Deficiency Procurement Scheme (PDPS) unless they go for agri-market reforms in a time-bound manner. The PDPS has provision of direct payment of differences between the MSP and selling price to farmers - like the one being currently implemented in Madhya Pradesh.

The states will be informed about this ‘condition’ during the ongoing Kharif campaign conference. The Conference is being organised to sensitise states on how to prepare itself to reap maximum benefits of normal monsoon rainfall during June-September period and also on how to conserve water during rainy season for its use during winter. Issues like new procurement mechanism, promotion of organic farming and micro irrigation will also be discussed during the meet.

“Only those states/Union Territories which have adopted the model Agricultural Produce and Livestock Marketing (Promotion & Facilitation) Act, 2017 or give a commitment in writing to do so within a specified time-frame shall be eligible to implement the scheme,” said the agenda paper of the meet.

The model APLM Act, shared by the Centre with states in April last year, seeks to create restriction-free market for agricultural produce across the country. Setting up private market for agricultural produce, making provision to facilitate direct sale of produce by farmers to consumers, excluding fruits and vegetables from the existing APMC law, single point levy of market fee and single registration for trade\transaction in more than one market are some of the key features of the model Act.


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