NEW DELHI: Government will guarantee procurement of arhar, urad, masur & maize for five years at
minimum support price
(
MSP
) from
farmers
across country who diversify from paddy, as it seeks to promote crops that consume less water & ensure that growers are not disadvantaged in any way. This will be in addition to cotton, where requirement of diversification will not be insisted upon.
During negotiations with farm representatives seeking guaranteed procurement and revised MSP formula, a team of Union ministers comprising Arjun Munda, Piyush Goyal and Nityanand Rai had offered guaranteed procurement for five commodities, but the proposal was rejected.
An official said two govt cooperatives - NAFED and NCCF - will sign contracts with such farmers to procure all their produce at MSP for five years, while maintaining that there will be no change in procurement regime for wheat and rice.
Already, a tripartite agreement has been signed for maize procurement that will be used by distilleries for ethanol production, a move that marks a clear shift from using rice and sugarcane for ethanol as the two are seen to be water guzzlers. Under the proposed mechanism for guaranteed procurement, farmers will be able to register on a portal using Aadhaar.
"Farmers should get good price for their produce and consumers shouldn't face any burden. So, while ensuring procurement of their produce, we are importing items to ensure there is enough supply," said a senior official.
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