Will it help our Farmers??
Giving a major boost to the pro-farmer initiatives of thegovernment, the Union Cabinet chaired by PrimeMinister Narendra Modi, approved a new UmbrellaScheme ‘Pradhan Mantri Annadata Aay SanrakshanAbhiyan’ (PM-AASHA) on September 12, 2018.Umbrella Scheme big scheme under which manyother small schemes are present.
BASICS
The government has already increased the MSP (minimumsupport price) of kharif crops by following the principleof 1.5 times the cost of production.
NOTES
According to a survey conducted by the National SampleSurvey Office (NSSO) in the 70th round in 2013, only 6%of farmers are able to sell their produce at MSP.According to a 2016 NITI Ayog evaluation report 79%farmers responded with ‘no’ when asked if they weresatisfied with the MSP regime.Reasons for their dissatisfaction were delay inpayments, lack of infrastructure at procurement
centres, distance to procurement centres and delayedannouncement of MSP rates.
PROBLEMS WITH MSP
MSP is presently (September 2018) is declaredfor 23 crops. Shanta Kumar report on FCIrestructuring,Buffer stock, PDS & Foodsecurity & Direct Benefit Transfer.
THE NEW SCHEME
The scheme is aimed at ensuring lucrative price tothe farmers for their produce as announced in the
Union Budget 2018.The new Umbrella Scheme – 3 componentsPrice Support Scheme (PSS) – Under the scheme, thephysical procurement of pulses, oilseeds, and ‘copra’(kernel of coconut) will be done by Central Nodal Agencieswith the proactive role of the state governments.Further, in addition to NAFED, the Food Cooperation ofndia (FCI) will take up PSS operations in states anddistricts. The procurement expenditure and losses due toprocurement will be borne by the Union Government as pernorms.
NAFED
It stands for National Agriculture Cooperative MarketingFederation of India.It is an apex organization of the marketing cooperatives foragriculture production.It comes under the Ministry of Agriculture and It wasfounded in October 1958 with its Head Quarter in NewDelhi.It has four regional offices at Delhi ,Mumbai , Chennai and Kolkata with 28zonal offices in different states.
FCI
It stands for Food Corporation of India. It was set up on14th Jan,1965. Its HQ is now in New Delhi ,but previouslyit was at Chennai.Price Deficiency Payment Scheme (PDPS) or Bhavantar Bhugtan YojanaPDPS is proposed to cover all oilseeds forwhich minimum support price (MSP) is
notified.In this, directpayment of the difference between theMSP and the selling/modal price will be made to preregisteredfarmers selling their produce in the notifiedmarket yard through a transparent auction process.All payments will be done directly into the registeredbank account of the farmer.
PILOT OF PRIVATE PROCUREMENT &STOCKIST
SCHEME (PPPS)
The cabinet also decided that the participation of privatesector in procurement operation needs to be piloted on the basis of the learnings the ambit of private participation inprocurement operations.
EXPENSES CONCERNING THE SCHEME
The cabinet has decided to give additional governmentguarantee of Rs..16,550 crore, making it Rs.45,550crore in total.
CONCLUSION
that steps be taken toimprove “facilities at procurement centres, such as dryingyards, weighing bridges, etc. should be provided to thefarmers.More Storage should be set up and maintainedproperly for better storage and reduction of wastage.The procurement centres should be in the village itself to avoid transportation costs. However, the government’s announcements to ensurethat farmers get the benefit of the MSP have done little toreinforce the procurement infrastructure which was a key recommendation of the Centre’s NITI Aayog.The NITI Ayog recommended
Giving a major boost to the pro-farmer initiatives of thegovernment, the Union Cabinet chaired by PrimeMinister Narendra Modi, approved a new UmbrellaScheme ‘Pradhan Mantri Annadata Aay SanrakshanAbhiyan’ (PM-AASHA) on September 12, 2018.Umbrella Scheme big scheme under which manyother small schemes are present.
BASICS
The government has already increased the MSP (minimumsupport price) of kharif crops by following the principleof 1.5 times the cost of production.
NOTES
According to a survey conducted by the National SampleSurvey Office (NSSO) in the 70th round in 2013, only 6%of farmers are able to sell their produce at MSP.According to a 2016 NITI Ayog evaluation report 79%farmers responded with ‘no’ when asked if they weresatisfied with the MSP regime.Reasons for their dissatisfaction were delay inpayments, lack of infrastructure at procurement
centres, distance to procurement centres and delayedannouncement of MSP rates.
PROBLEMS WITH MSP
MSP is presently (September 2018) is declaredfor 23 crops. Shanta Kumar report on FCIrestructuring,Buffer stock, PDS & Foodsecurity & Direct Benefit Transfer.
THE NEW SCHEME
The scheme is aimed at ensuring lucrative price tothe farmers for their produce as announced in the
Union Budget 2018.The new Umbrella Scheme – 3 componentsPrice Support Scheme (PSS) – Under the scheme, thephysical procurement of pulses, oilseeds, and ‘copra’(kernel of coconut) will be done by Central Nodal Agencieswith the proactive role of the state governments.Further, in addition to NAFED, the Food Cooperation ofndia (FCI) will take up PSS operations in states anddistricts. The procurement expenditure and losses due toprocurement will be borne by the Union Government as pernorms.
NAFED
It stands for National Agriculture Cooperative MarketingFederation of India.It is an apex organization of the marketing cooperatives foragriculture production.It comes under the Ministry of Agriculture and It wasfounded in October 1958 with its Head Quarter in NewDelhi.It has four regional offices at Delhi ,Mumbai , Chennai and Kolkata with 28zonal offices in different states.
FCI
It stands for Food Corporation of India. It was set up on14th Jan,1965. Its HQ is now in New Delhi ,but previouslyit was at Chennai.Price Deficiency Payment Scheme (PDPS) or Bhavantar Bhugtan YojanaPDPS is proposed to cover all oilseeds forwhich minimum support price (MSP) is
notified.In this, directpayment of the difference between theMSP and the selling/modal price will be made to preregisteredfarmers selling their produce in the notifiedmarket yard through a transparent auction process.All payments will be done directly into the registeredbank account of the farmer.
PILOT OF PRIVATE PROCUREMENT &STOCKIST
SCHEME (PPPS)
The cabinet also decided that the participation of privatesector in procurement operation needs to be piloted on the basis of the learnings the ambit of private participation inprocurement operations.
EXPENSES CONCERNING THE SCHEME
The cabinet has decided to give additional governmentguarantee of Rs..16,550 crore, making it Rs.45,550crore in total.
CONCLUSION
that steps be taken toimprove “facilities at procurement centres, such as dryingyards, weighing bridges, etc. should be provided to thefarmers.More Storage should be set up and maintainedproperly for better storage and reduction of wastage.The procurement centres should be in the village itself to avoid transportation costs. However, the government’s announcements to ensurethat farmers get the benefit of the MSP have done little toreinforce the procurement infrastructure which was a key recommendation of the Centre’s NITI Aayog.The NITI Ayog recommended
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