The Government ensures Minimum Support Price (MSP) through procurement operations undertaken by the Central, State and Cooperative agencies in the States. State Governments have been alerted from time to time to make adequate arrangements to ensure MSP to farmers.
Government offers to procure farmers’ produce at MSP, however, they are free to sell it to Government agencies or in the open market as is advantageous to them.
In addition, Government has taken several steps to ensure MSP for all agricultural produce which inter alia includes setting up of procurement centre keeping in view the potential in the areas; creating awareness among the farmers of the MSP operations; making payment through arthias/co-operative societies to the farmers through Ac payee cheque/electronic mode as per prevailing situation in the states; encouraging decentralized procurement; adopting e-procurement system; engaging private players in certain States to participate in procurement operation etc.
To ensure remunerative price to farmers, the Government procured 38.65 million tonnes of Rice, 22.93 million tonnes of Wheat and 1.3 million tonnes of pulses during 2016-17 across various States.
Government has also launched a scheme developing a pan India electronic trading platform under ‘National Agriculture Market’ (NAM) aiming to integrate 585 regulated markets with the common e-market platform to ensure remunerative prices to the farmers. Each State is being encouraged to undertake three major reforms – allow electronic trading, have a single license valid throughout the State and a single entry point market fee. 455 markets in 13 States have already been brought on the e-NAM platform.
This information was given by the Minister of State for Agriculture & Farmers Welfare, Shri S. S. Ahluwalia, in reply to a question in Lok Sabha today (July 18, 2017).