Govt doubles guarantee for procurements of pulses & oilseeds at MSP

Cabinet approves doubling of Government guarantee from Rs 9,500 crore to Rs 19,000 crore for procurements of pulses and oilseeds at MSP under Price Support Scheme by NAFED

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New Delhi: The Cabinet Committee on Economic Affairs, chaired by Prime Minister Mr Narendra Modi, recently approved the regularization and extension of government guarantee provided to lender bank for providing credit limit to National Agricultural Cooperative Marketing Federation of India (NAFED). The same has been increased to Rs 19,000 crore from earlier Rs 9,500 crore for undertaking procurement operation of pulses and oilseeds under Price Support Scheme (PSS) and to Small Farmers Agri-Business Consortium (SFAC) for Rs 45 crore for meeting their existing liability and settlement of extant claims.

These government guarantees are provided for a period of five years i.e. till 2021-22 by the government of India and with a waiver of 1 percent government guarantee fee.

As the market price of almost all pulses and oilseeds are ruling below Minimum Support Price (MSP) as notified by government of India, provision of government guarantee will help in protecting the farmers producing these commodities from making distress sales during the peak arrival period and to provide remunerative prices with a view to encourage higher investment and production and also to safeguard the interest of consumer by making available supplies at reasonable price with low cost of intermediation.