New procurement mechanism likely before kharif crop

NEW DELHI: The Central and state governments will finalise a new crop procurement mechanism before the summer-sown, or kharif, crop is harvested to make sure that famers get the enhanced minimum support price (MSP) for crops as promised in this year’s budget, agriculture minister Radha Mohan Singh said.

Singh told ET that some states had failed to procure the entire produce from farmers in the past, which led to rural distress despite the government fixing the support price at 1.5 times the input cost for rabi, or winter-sown, crops. “Before the kharif crop arrives, we will come with a mechanism to ensure farmers get the MSP announced by the government,” he said.

The minister said the agricultural ministry, Niti Aayog and states would work out the new mechanism to make sure that the benefits of the support price reach every farmer.


The government announces MSP for every crop season, but the system has worked effectively in only a few states, mainly Punjab and Haryana, forcing farmers to sell their produce at a lower price in regions where official procurement agencies do not operate.

“Farmers distress has not gone as even though prices were being increased, the procurement at MSP rate was not happening in states,” he said.

He said the government wants to make sure that states act in the interest of farmers. “We also started in a small way to include crops like pulses, oilseed, cotton last year under MSP, but could not buy from all the produce coming in the country. Now we will ensure that states procure the crop and farmers get the MSP," Singh said.

In the rabi season, 8 crops out of the 24 crops are covered under MSP while in kharif season, the government announces MSP for 18 crops- including paddy, soyabean, maize, cotton and others.

Finance minister Arun Jaitley announced the government’s decision to announce MSPs to ensure that farmers get 1.5 times their input costs. Singh said the BJP had promised this in its election manifesto. “Our government doesn’t only want to announce MSP, but also ensure that farmers get it. Not every farmer got MSP for the crop sold, but over the past few years we have procured a lot of pulses, oilseed and cotton to help farmers in distress,” he said.