Modi Cabinet Decisions: The Price Support Scheme of the Ministry of Agriculture is implemented when the price of agricultural produce falls below the Minimum Support Price (MSP).
The Union Cabinet on Wednesday approved an increase in the purchase limit of tur, urad and masoor from the existing 25 per cent to 40 per cent under the Price Support Scheme (PSS). According to an official statement, the Cabinet Committee on Economic Affairs (CCEA) chaired by Prime Minister Narendra Modi has approved the release of 1.5 million tonnes of gram from the buffer stock at concessional rates to states and union territories for use in various welfare schemes. Approval was also given.
The Price Support Scheme of the Ministry of Agriculture comes into operation when the price of agricultural produce falls below the Minimum Support Price (MSP). On the other hand, under the Price Stabilization Fund (PSF) under the Ministry of Food, commodities are procured at market prices.
What is the decision of CCEA?
According to the statement, the CCEA has approved the increase in the purchase limit of tur, urad and masoor from the existing 25 per cent to 40 per cent under the Price Support Scheme (PSS). With this, CCEA decided to release 15 lakh tonnes of gram at concessional rates to States/UTs out of stock of various pulses procured under Price Support Scheme and Price Stabilization Fund.
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States will be offered to lift 1.5 million tonnes of chana on a ‘first come first serve’ basis with a discount of Rs 8 per kg on the issue price of the source states. According to the statement, the government will spend Rs 1,200 crore on the implementation of this scheme. States will need to use this gram in various welfare schemes like mid-day meal, Public Distribution System (PDS) and Integrated Child Development Program (ICDP).
Record production of gram in the country
The government said that this one-time arrangement would be for a period of 12 months or till the complete disposal of 1.5 million tonnes of gram, whichever is earlier. According to the statement, the disposal of gram will provide space for other grains in the godowns. In the coming Rabi season, space will be required for fresh stock procured under PSS. It is noteworthy that in recent years, especially in the last three years, there has been a record production of gram in the country.
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Under the PSS, the Center has made record procurement of gram during the rabi season of crop years 2019-20, 2020-21 and 2021-22. With this, 30.55 lakh tonnes of gram is available with the government under PSS and PSF. According to the government, the government is expecting good gram production in the coming Rabi season as well.
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