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Market Assurance Scheme: minimum support price (MSP) assurance scheme for farmers

minimum support price

Govt of India is planning to launch Market Assurance Scheme to provide minimum support price to the farmers for their produce. The new scheme will mitigate the risk faced by farmers due to drop in the prices after harvest. The center government is in consultation with the states and working on the scheme.

Under the Market Assurance Scheme the state governments will be free to procure all those crops for which minimum support prices are announced. The center government will compensate states at a rate of 30% of the procurement cost. The scheme will provide assurance of minimum support prices to the farmers facing sever drought and inadequate rains. The recent situations of the farmers created a lot of distress amongst them in rural areas and many violent agitations occurred in various states across the state.

Wheat, rice and some of the pulses are not included in the Market Assurance Scheme as they are already procured by the central government. Rest all crops can be procured by the state under the scheme at the MSP. The state government is free to use the procured crops for nutrition support schemes such as Mid Day Meal program or sale it in the whole sale market.

Government is also working on removing inefficiencies in the procurement systems and strengthen it further.

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