Dual-pricing system for farmers from 2007

The government is contemplating bringing in changes in the procurement policy by introducing a "dual-pricing system" to tide over the current "difficult phase".

AHMEDABAD: The government is contemplating bringing in changes in the procurement policy by introducing a "dual-pricing system" to tide over the current "difficult phase".

"In order to stop distress sale during the harvest season, the government fixes a Minimum Support Price (MSP). But if the prices of a particular agricultural produce goes above the MSP then the farmers should be paid a higher price by the government (similar to the one offered by private players)," Pawar said at a function of Cosmos Cooperative Bank Ltd here.

"We are seriously thinking of bringing some changes in our procurement policy," Pawar said about his decision to import wheat this season.

Under the dual-pricing system, which would probably be introduced next year, the farmers will get the best price for their crop, Pawar said.

Farmers were getting better prices for the first time since the APMC Act (Agricultural Produce Market Committee) was amended in about 23 states, he added.

"However, as an Agriculture Minister I have to ensure that we procure enough from the farmers," Pawar said.
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Explaining the decision to bring in dual-pricing system in the procurement policy Pawar said, this year during the wheat season, the farmers in wheat producing states of Punjab, Haryana and Western Uttar Pradesh did not sell their produce to our 'mandis'.
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