Price Support Scheme

Why is in news? In order to boost domestic production, Government removes ceiling for procurement of Tur, Urad and Masur under Price Support Scheme (PSS) for 2023-24

• In a significant step towards enhancing domestic production of pulses, the government has removed the procurement ceilings of 40% for tur, urad and masur under Price Support Scheme (PSS) operations for 2023-24.
• The decision, in effect, assures the procurement of these pulses from farmers at MSP without ceilings.
• The assured procurement of these pulses by the government at remunerative prices will help motivate the farmers to enhance sowing area in respect of tur, urad and masur in the upcoming Kharif and Rabi sowing seasons in order to enhance the production.

Price Support Scheme (PSS):

• The Price Support Scheme (PSS) is being implemented by the Government of India in the state.
• Main crops of the state like Bajra, Jowar, Maize, Paddy, Cotton, Tur, Moong, Urad, Groundnut, Sesamum Wheat, Gram, Mustard, and Sugarcane etc. are covered.
• The Department of Agriculture & Cooperation implements the PSS for procurement of oil seeds, pulses and cotton, through NAFED which is the Central nodal agency, at the MSP declared by the government.
• NAFED undertakes procurement as and when prices fall below the MSP. Procurement under PSS is continued till prices stabilize at or above the MSP.

Benefits:

• When prices of commodities fall below the MSP, State and central notified procurement nodal agencies purchase commodities directly from the farmers at MSP, Under specified FAQ ( fair Average Quality).
• By this way prices of the main commodities are procured and protect the farmers against the economical loss in farming.
• Losses, if any incurred by NAFED in undertaking MSP operations are reimbursed by the central Government.
• Profit, if any, earned in undertaking MSP operations is credited to the central government.