Minimum Support Prices for Agricultural Produce

[pib] Price Support Scheme (PSS) for Moong and Urad

Why in the News?

The Union Ministry of Agriculture has approved the procurement of Moong and Urad in Madhya Pradesh and Urad in Uttar Pradesh under the Price Support Scheme (PSS).  

Back2Basics:

Moong (Green Gram):

  • Moong is a high-protein pulse grown mainly in the Kharif season (June–July) and also in summer (March–April) and limited Rabi areas.
  • It thrives in well-drained loamy to sandy-loam soils with a temperatures of 25–35°C.
  • Fits well into crop rotations like Moong–Wheat or Summer Moong–Kharif Moong–Raya due to its short duration (60–75 days).
  • Major producers are Rajasthan, Maharashtra, MP, Andhra Pradesh, and UP.

Urad (Black Gram):

  • Urad is grown mainly in the Kharif season (June–July) and also as a Rabi crop in southern India, needing a warm, humid climate.
  • Prefers well-drained loamy soils, unsuitable for waterlogged or saline areas; ideal temperature is 25–35°C.
  • Often sown in rotations with cereals like rice or wheat and widely used in intercropping/mixed cropping systems.
  • Key producing states include UP, MP, Andhra Pradesh, and Tamil Nadu.

About Price Support Scheme (PSS):

  • Overview: PSS is a component of the Pradhan Mantri Annadata Aay Sanrakshan Abhiyan (PM-AASHA), launched in 2018 to ensure remunerative prices for farmers.
  • Objective: It ensures procurement at the Minimum Support Price (MSP) for oilseeds, pulses, and cotton when market prices fall below MSP.
  • Nodal Agency:  It is implemented by the Department of Agriculture & Cooperation through:
    • National Agricultural Cooperative Marketing Federation of India (NAFED) (Central nodal agency)
    • Food Corporation of India (FCI) (in specific cases)
  • How PSS Works:
    • MSPs are announced before each cropping season based on recommendations from the Commission for Agricultural Costs and Prices (CACP).
    • If the market price falls below MSP, central and state nodal agencies procure the produce directly from farmers.
    • Only crops meeting the Fair Average Quality (FAQ) standards are procured.
    • Procurement continues until market prices stabilise at or above MSP.
  • Eligibility and Access:
    • All farmers cultivating notified crops are eligible to benefit under PSS.
    • They must sell their produce at designated procurement centres, such as APMCs.
    • Government employees are typically excluded from the scheme’s benefits.

What is the PM-AASHA Scheme?

  • Launch: PM-AASHA, launched in September 2018, is an umbrella scheme by the Government of India designed to ensure fair prices for farmers’ produce, specifically for pulses, oilseeds, and copra.
  • Goal: It complements the government’s policy of setting MSP at 1.5 times the cost of production.
  • Components: The scheme aims to translate increased MSPs into actual income gains through three implementation pathways:
    1. Price Support Scheme (PSS): Physical procurement at MSP by central agencies like NAFED.
    2. Price Deficiency Payment Scheme (PDPS): Farmers receive the difference between MSP and actual selling price directly into their bank accounts; no physical procurement.
    3. Private Procurement and Stockist Scheme (PPSS): Pilot scheme allowing private players to procure at MSP to supplement government efforts.
  • Nodal Agency: It is implemented by the Ministry of Agriculture and Farmers Welfare, with procurement agencies operating at both central and state levels.

 

[UPSC 2020] With reference to pulse production in India, consider the following statements:

1. Black gram can be cultivated as both kharif and rabi crop. 2. Green-gram alone accounts for nearly half of pulse production. 3. In the last three decades, while the production of kharif pulses has increased, the production of rabi pulses has decreased. Which of the statements given above is/are correct?

Options: (a) 1 only * (b) 2 and 3 only (c) 2 only (d) 1, 2 and 3

 

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