The Centre’s proposals to decentralise price support schemes for farmers are not viable as State governments do not possess the infrastructure or willingness required to implement them, said S.K. Singh, Additional Managing Director of the National Agricultural Cooperative Marketing Federation of India (NAFED), on the on the sidelines of the Agriculture Ministry’s annual kharif conference on Thursday. “First and foremost, without infrastructure, it is not possible,” Mr. Singh told The Hindu .
NAFED is responsible for the procurement of oilseed, pulses and copra under the current central price support scheme.
The Centre declares minimum support prices (MSP) for 23 crops. While paddy and wheat farmers can depend on the Food Corporation of India (FCI) to procure their crops at the MSP rates, the system is less widespread for other crops, as State governments must request the Centre to step in and procure the harvest when prices fall below the MSP.
“Although the full cost of the scheme is borne by the Government of India, and the NAFED MD writes to all States, only a few States approach us,” said Ashish Kumar Bhutani, Joint Secretary-Agriculture.
States fail to maintain a revolving fund from which they can pay farmers over the 10-day window before they receive payment from the Centre; some also lack storage space, adequate number of procurement centres, and trained surveyors.
The new proposals, made by Niti Aayog and communicated to States last month, shift the responsibility of procurement of oilseeds, pulses and coarse cereals from the Centre to the States. Under the Market Assurance Scheme, States are responsible for the procurement and disposal of crops, while the Price Deficiency Procurement Scheme will directly pay farmers the difference between the MSP and the sale price, instead of procuring his crop. Both schemes require the sharing of costs between Centre and the States.
