The Centre has released Rs 700 crore to cooperative Nafed to undertake procurement of Rabi pulses and other agri-produce, grown in the 2016-17 crop year, at the support price and protect growers from falling prices.
Under the Price Support Scheme (PSS) operated by the Agriculture Ministry available fund will be used to clear all outstanding payments to farmers for pulses, groundnut, mustard seed and other commodities undertaken in the 2016-17 crop year that will last by this month.
The PSS purpose is to protect farmers with the minimum support price for their produce at the time of price falls.
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A senior Agriculture Ministry official said, “We have sanctioned Rs 700 crore to National Agricultural Cooperative Marketing Federation (Nafed) for procurement of 2016-17 rabi crops. The line of credit will help the cooperative to make payments to farmers on time.”
Nafed has already released Rs 512.18 crore to Gujarat, Maharashtra and Haryana.
Nafed already procured 1 lakh tonnes of Tur in Maharashtra under the PSS and it is making additional procurement of 15,000 tonnes.
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In Maharashtra, the cooperative also procured 845 tonnes of Moong and 160 tonnes of Soyabean under the scheme.
In Madhya Pradesh, Nafed is currently procuring Moong and Urad under PSS. The cooperative has been asked to buy 11,250 tonnes of Urad and 55,500 tonnes of Moong at MSP from farmers in the state.
Nafed is procuring pulses under the two government schemes Price Support Scheme (PSS) and price stabilisation fund (PSF)
Under Agriculture Ministry the PSS is operationalised only and after the prices of agri-produce fall below the MSP.
On the other hand, under the Food Ministry PSF commodities are purchased at market prices.
Nafed had procured pulses and other commodities worth Rs 5,800 crore during 2016-17 fiscal mainly under the PSF. in the current fiscal so far, the cooperative undertaken procurement to the tune of Rs 2,500 crore.
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