The Centre on Thursday enhanced the daily procurement limit of agri-crops from 25 quintals to 40 quintals per farmer under the Price Support Scheme (PSS) in view of rates dropping below the minimum support price (MSP) amid the COVID-19 lockdown.
With some states expressing concern over lower prices of perishable crops, the Union Agriculture Ministry has asked such states to send a proposal for procurement under the Market Intervention Scheme (MIS).
Direct procurement or PSS scheme is implemented when prices of pulses, oilseeds and copra fall below MSP, with the centre bearing procurement expenditure and losses up to 25 per cent of the production.
Whereas MIS is implemented for procurement of perishable agricultural and horticultural crops when prices fall by 10 per cent from over previous normal year, with states bearing 50 per cent of the losses if incurred.
In a communication to cooperative NAFED, which is a nodal agency for procurement under these schemes, the Ministry said the daily limit of procurement has been increased from 25 quintal to 40 quintals per person under the PSS for the rabi crops this year.
It also asked NAFED to buy oilseeds and pulses under the PSS for a period of 90 days from the commencement of the procurement data, which may be decided by a respective state.
As far as MIS was concerned, the Ministry -- in a separate circular -- asked states to send their proposal for implementation of direct procurement of perishable agri and horticultural commodities under the scheme if prices were seen falling.
Currently, harvesting of rabi crops has begun and its pace will pick up in the coming days.
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