Centre Approval for MSP Procurement of Pulses and Oilseeds
Source:ddnews ↗
Why It Matters
The procurement of pulses and oilseeds through price support schemes is critical for understanding India's agricultural pricing policy, food inflation control, and efforts towards attaining self-reliance (Atmanirbhar Bharat) in edible oils and pulses, which are high-yield areas for UPPSC PCS questions.
Summary
The Central Government has sanctioned an allocation of ₹5,547.99 crore for the procurement of pulses and oilseeds under the Minimum Support Price (MSP) and Price Support Scheme (PSS) across three states. This initiative under the PM-AASHA framework aims to guarantee remunerative returns to farmers, incentivize crop diversification, and address national food security challenges by augmenting domestic oilseed and pulse reserves.
Key Points
- The Central Government approved ₹5,547.99 crore for the procurement of pulses and oilseeds under the Minimum Support Price (MSP) framework in three states.
- The procurement is executed via the Price Support Scheme (PSS), which is part of the PM-AASHA umbrella scheme to ensure remunerative prices to farmers.
- The initiative focuses on boosting domestic production of pulses and oilseeds to reduce import dependency and manage price volatility.
- It provides financial safety and assured market access to farmers cultivating kharif and rabi crops in participating states.
Important Terms
Minimum Support Price (MSP)
An assured price floor fixed by the government for certain agricultural crops to safeguard producers against sharp price drops and distress sales.
UPSC context
GS Paper III (Agriculture): Tests understanding of food security, government pricing policy, and farmer income support mechanisms.
Price Support Scheme (PSS)
A scheme under PM-AASHA wherein central agencies physically procure pulses, oilseeds, and copra at the MSP from farmers when market prices fall below the support level.
UPSC context
GS Paper III (Agriculture): Tests knowledge of agricultural marketing, procurement mechanisms, and government price stabilization measures.
PM-AASHA
An umbrella scheme launched by the central government to ensure remunerative prices to farmers by integrating price support, price deficiency, and private procurement mechanisms.
UPSC context
GS Paper III (Agriculture): Crucial for questions on farmer welfare schemes, agrarian distress, and crop diversification policies.
Cabinet Committee on Economic Affairs (CCEA)
A cabinet committee headed by the Prime Minister that reviews economic trends, infrastructure, and pricing policies including the approval of MSP recommendations.
UPSC context
GS Paper II (Polity/Governance): Tests knowledge of executive decision-making bodies, institutional structures, and economic policy formulation.
Prelims Trap
MSP procurement is a statutory legal entitlement guaranteed across all states and crops without requirement of specific scheme interventions.
Aspirants often assume MSP is a statutory right backed by law for all crops, whereas it is an administrative recommendation mechanism implemented through specific procurement schemes like PSS and PM-AASHA.
Static Concepts Connected
What are the core components and operational mechanisms of the PM-AASHA scheme in India?
- Objective & Scope: Umbrella framework named Pradhan Mantri Annadata Aay Sanrakshan Abhiyan designed to ensure remunerative prices to farmers for their produce.
- PSS Mechanism: Includes Price Support Scheme (PSS) where central agencies physically procure pulses, oilseeds, and copra at MSP.
- PDPS Mechanism: Includes Price Deficiency Payment Scheme (PDPS) covering the difference between modal market price and MSP without physical procurement.
- Nodal Agencies: Nafed, FCI, and other central nodal agencies collaborate with state governments to operationalize physical procurement during surplus harvests.
Cross-Topic Patterns
MSP Procurement & WTO Amber Box Limits
PM-AASHA and PSS mechanisms connect food security goals with fiscal management of food subsidy bills and international WTO AoA trade amber box limits.
Crop Diversification & Groundwater Sustainability in UP
Diversification away from paddy-wheat cycles toward pulses and oilseeds directly impacts UP's groundwater table recovery and agrarian resilience under state agricultural roadmaps.
Expect a multi-statement match-the-scheme question on PM-AASHA components (PSS, PDPS, PPSS) and central nodal procurement agencies.
Linked PYQs · 2
Linked PYQs · 2
- 2018UPPSC_PRELIMSGS1
From 4th July 2018 the Minimum Support Price (MSP) during 2018-19 for paddy per quintal is
- 2022UPPSC_PRELIMSGS1
Consider the following statements about farm subsidies in India. 1. The input subsidies in India, such as on fertilizers fall under indirect farm subsidies. 2. Reduction in power and irrigation bills offered to farmers fall under direct farm subsidies. 3. The agricultural provisions of the World Trade Organization (WTO) though allow direct farm subsidies, prohibit indirect subsidies. 4. All subsidies provided by the governments in India fall under the indirect subsidies. Select the correct statements using the code given below.
