Cabinet clears new procurement policy

Why in the news ?
  • The Union Cabinet has approved a new Umbrella Scheme “Pradhan Mantri Annadata Aay SanraksHan Abhiyan’ (PM-AASHA).  
  • The Scheme is aimed at ensuring remunerative prices to the farmers for their produce as announced in the Union Budget for 2018. 
 
Background
  • Government of India is working with the holistic approach of solving any issue rather than in fragments.
  • Government realizes that it is essential that if price of the agriculture produce market is less than MSP, then in that case State Government and Central Government should purchase either at MSP or work in a manner to provide MSP for the farmers through some other mechanism.
  • With this approach, Cabinet has approved the Umbrella Scheme of PM-AASHA.
  • The Government is committed to realizing the vision of doubling farmers’ income by 2022. 
  • The emphasis is on enhancing productivity, reducing cost of cultivation and strengthening post-harvesting management, including market structure.
 
Components of PM-AASHA
  • The new Umbrella Scheme includes the mechanism of ensuring remunerative prices to the farmers and is comprised of
    Price Support Scheme (PSS),
    Price Deficiency Payment Scheme (PDPS)
    Pilot of Private Procurement & Stockist Scheme (PPPS).
  • In Price Support Scheme (PSS), physical procurement of pulses, oilseeds and Copra will be done by Central Nodal Agencies with proactive role of State governments.
  • Under Price Deficiency Payment Scheme this scheme (PDPS), it is proposed to cover all oilseeds for which MSP is notified.
  • In this direct payment of the difference between the MSP and the selling/modal price will be made to pre-registered farmers selling his produce in the notified market yard through a transparent auction process.
  • Cabinet has also decided that participation of private sector in procurement operation needs to piloted so that on the basis of learnings the ambit of private participation in procurement operations may be increased.
  • The selected private agency shall procure the commodity at MSP in the notified markets.
Source
PIB



Posted by Jawwad Kazi on 13th Sep 2018
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