Madhya Pradesh to Implement Price Support Scheme for Procurement of 13.68 Lakh Tonnes Soyabean for Kharif 2024-25 by Amit Gupta, Kedia Advisory
Madhya Pradesh will implement the Price Support Scheme (PSS) to procure up to 13.68 lakh tonnes of soyabean for the kharif 2024-25 season at an MSP of ?4,892 per quintal, as approved by the Union Agriculture Ministry. In early September, soyabean prices in MP mandis averaged ?4,423/quintal, resulting in farmer losses of over ?22 crore due to lower-than-MSP prices. The procurement, handled by Nafed and NCCF, will focus on fair average quality (FAQ) soyabean, with the state providing a revolving fund of 15% of procurement costs. The procurement start date will be decided by the state, pending verification of scientific storage availability.
Key Highlights
# MP to procure 13.68 lakh tonnes of soyabean under Price Support Scheme (PSS).
# Soyabean prices in MP mandis averaged ?469/quintal below MSP in early September.
# Nafed and NCCF tasked with procurement and storage of FAQ soyabean.
# The State government will ensure a revolving fund equivalent to 15% of procurement costs.
# Procurement commencement pending State decision and scientific storage verification.
Madhya Pradesh is set to implement the Price Support Scheme (PSS) for the procurement of 13.68 lakh tonnes of soyabean during the kharif 2024-25 season. Approved by the Union Agriculture Ministry, this initiative aims to ensure farmers receive the minimum support price (MSP) of ?4,892 per quintal. The decision follows approvals for similar procurements in Maharashtra, Karnataka, and Telangana.
Soyabean prices in MP's mandis averaged ?4,423/quintal during the first 10 days of September, significantly lower than the MSP by ?469/quintal. Farmers in the state incurred losses of over ?22 crore during this period. This price underperformance highlights the need for immediate implementation of the PSS to safeguard farmers' incomes. Prices in other states like Maharashtra, Karnataka, and Telangana also remained below MSP.
The procurement process will be handled by central nodal agencies, Nafed and NCCF, ensuring that only the fair average quality (FAQ) variety of soyabean is procured and stored as per guidelines. The Agriculture Ministry has asked for scientific storage availability to be confirmed before procurement begins. Additionally, the State government is required to provide a revolving fund equivalent to 15% of the procurement cost to ensure timely payments to farmers within three days of procurement.
The approval follows concerns raised by local politicians about the delay in initiating the PSS for MP. The State Cabinet has now formally requested the Centre's approval, expediting the process.
Finally
Madhya Pradesh’s soyabean procurement under PSS aims to stabilize prices and protect farmers, pending storage verification and state-set commencement dates.
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