The Indian agricultural sector is crucial for the nation’s economy and food security. To ensure that farmers receive fair prices for their produce, the government implements various schemes, including the Price Support Scheme (PSS) and the Market Intervention Scheme (MIS). These schemes are often implemented through the National Agricultural Cooperative Marketing Federation of India (NAFED), a key player in agricultural marketing. This piece explores how these mechanisms work to safeguard farmers’ interests.
Understanding the Price Support Scheme (PSS) and Market Intervention Scheme (MIS)
The PSS and MIS are government initiatives designed to provide remunerative prices to farmers. They are particularly important during times when market prices fall below the Minimum Support Price (MSP) or Market Intervention Price (MIP). The schemes aim to protect farmers from distress sales and ensure that they receive fair compensation for their produce.
Key Objectives of the PSS and MIS
The primary objectives of these schemes are:
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Remunerative Prices: To ensure that farmers receive prices that cover their cost of production and provide a reasonable profit.
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Minimum Support Price (MSP): To provide a guaranteed price for certain crops, ensuring a safety net for farmers.
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Market Intervention: To step into the market when prices fall below the MSP or MIP, preventing distress sales.
Implementation through NAFED
The National Agricultural Cooperative Marketing Federation of India (NAFED) plays a crucial role in implementing the PSS and MIS. NAFED is a national-level cooperative organization that works to:
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Procurement: Purchase agricultural commodities from farmers at the MSP or MIP when market prices fall below these levels.
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Storage: Store the procured commodities to prevent spoilage and ensure a stable supply.
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Distribution: Distribute the commodities through various channels to consumers.
Salient Features of the PSS and MIS
The Price Support Scheme (PSS) and Market Intervention Scheme (MIS) share the following salient features:
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Remunerative Prices: Both schemes aim to ensure that farmers receive remunerative prices for their produce.
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Market Intervention: When market prices fall below the MSP/MIP, central and state agencies, often through NAFED, start purchasing operations.
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Direct Payment: Farmers are paid the MSP/MIP directly for their produce.
Pattern of Assistance
The pattern of assistance under these schemes is as per the approval announced by the Government at the time of declaration of MSP. This means that the specific details of the support, including the price and the quantity to be procured, are decided by the government based on market conditions and other factors.
Eligibility for the Schemes
The schemes are primarily implemented through NAFED and state agencies. This means that:
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NAFED: NAFED is the primary agency responsible for procurement and implementation.
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State Agencies: State-level agencies also participate in the procurement process, often working in coordination with NAFED.
Contact Information
For any queries or to initiate the process, the following contact information is provided:
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Contact Person: Joint Secretary (Coop.)
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Department: Department of Agriculture & Cooperation (DAC)
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Location: Krishi Bhawan, New Delhi
PSS and MIS in the Broader Agricultural Context
The PSS and MIS are crucial components of India’s agricultural policy. They work in tandem with other initiatives to:
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Protect Farmers: Safeguard farmers from the volatility of market prices.
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Encourage Production: Provide incentives for farmers to continue producing agricultural commodities.
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Ensure Food Security: Contribute to the nation’s food security by ensuring a stable supply of agricultural products.
Conclusion
The Price Support Scheme (PSS) and Market Intervention Scheme (MIS), implemented through NAFED, are vital mechanisms for supporting the Indian agricultural sector. By ensuring remunerative prices and intervening in the market when necessary, these schemes protect farmers from distress sales and contribute to the overall stability of the agricultural economy. They demonstrate the government’s commitment to supporting its farmers and ensuring the sustainability of the agricultural sector.