Govt plans to procure 3 varieties of pulses, maize at MSP
The government agencies like NAFED and NCCF may enter into contracts with farmers for five years, official sources said.
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NEW DELHI: The government is planning to undertake guaranteed procurement of pulses -- tur, urad and masoor -- and maize at MSP from farmers if they opt for diversification from paddy crop, sources said.
The Centre also mulling procuring cotton at minimum support price (MSP) without any condition of diversification, they said.
The government agencies like NAFED and NCCF may enter into contracts with farmers for five years, official sources said.
According to sources, the government could consider procurement of pulses, maize and cotton at MSP without any quantative restrictions, in case the farmers opt to move away from the water-guzzling paddy crop.
A portal is being created by the Food and Consumer Affairs Ministry where farmers can register by providing details like their Aadhaar Card number. In the portal, farmers will have to self-certify and mention diversification into these pulses and maize crops.
Last month, a panel of three Union ministers proposed buying of these five crops by government agencies at MSP for five years after entering into an agreement with farmers, as part of the government's efforts to end farmers' protests at the Punjab-Haryana border.
However, farmer groups had rejected the government's proposal and are continuing with their protest.
Sources said the government has decided to implement this proposal given to farmer groups as it seeks to promote diversity.
Food and Consumer Affairs Minister Piyush Goyal, Agriculture Minister Arjun Munda and Minister of State for Home Affairs Nityanand Rai held four rounds of talks with farmer leaders over their demands, including a legal MSP guarantee. A large number of farmers are camping at the Punjab-Haryana border to press for their demand.
"Cooperative societies like the NCCF (National Cooperative Consumers Federation) and NAFED (National Agricultural Cooperative Marketing Federation of India) will enter into a contract with those farmers who grow 'tur dal', 'urad dal', 'masoor dal’ or maize for buying their crop at MSP for next five years.
"There will be no limit on the quantity (purchased) and a portal will be developed for this," Goyal had said.
The source stressed the need for diversification from paddy crops, which requires a lot of water, in states like Punjab and Haryana, and asserted that the Centre will procure these crops from farmers at MSP from across the country.
The move would also help boost domestic production of pulses and reduce import dependence.
The government also wants to enhance maize production for its ethanol blending programme. It wants to discourage the use of rice for the production of ethanol.
The Centre has achieved 12 per cent blending of ethanol with petrol and has set a target of 20 per cent by 2025.
Globally, the source said, maize is used widely for ethanol production.
The state-owned Cotton Corporation of India (CCI) already procures cotton whenever the domestic prices fall below the MSP.