Centre approves MP’s request for procurement of soyabean at MSP

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Madhya Pradesh will implement the Price Support Scheme (PSS) for the procurement of a maximum quantity of 13.68 lakh tonnes (lt) of soyabean for the kharif 2024-25 season strictly as per the PSS Guidelines, 2018. The Union Agriculture Ministry, in a letter to the State government, conveyed its approval. Earlier, the approval for the purchase of soyabean at MSP of ₹4,892/quintal was given to Maharashtra, Karnataka and Telangana.

The average price of soyabean in mandis (agriculture market yards) in MP was ₹4,423/quintal, in Maharashtra was ₹4,408/quintal, in Karnataka ₹4,331/quintal, in Rajasthan ₹4,382/quintal and Telangana ₹4,437/quintal during first 10 days of this month. Considering that 48,175 tonnes of soyabean arrived in mandis during September 1-10 in MP, farmers have lost over ₹22 crore by selling their crop at ₹469/quintal lower than the MSP.

“The date of commencement of the procurement shall be decided by State government and the procurement period shall remain 90 days from such date. Based on the decision of State government, the Central nodal agencies (Nafed and NCCF) are requested to intimate the date of commencement of the procurement of soyabean for kharif 2024-25 in Madhya Pradesh to this Department,” the ministry said in the letter.

‘Scientific storage’

Further, stressing on the need for procurement to be limited after confirmed availability of scientific storage, the Centre has asked central nodal agencies to verify the availability of scientific storage space, as per PSS Guideline, arranged by the State government, within normal limit from the procurement centres before commencement of the official purchase.

The Agriculture Ministry has asked Nafed and NCCF to ensure the procurement of fair average quality (FAQ) variety of soyabean from the registered farmers and also keep under proper storage conditions.

It said Nafed and NCCF shall have to dispose of the procured stock of soyabean strictly as per provisions of prevailing PSS Guidelines.

Like all other States under the PSS scheme, the Centre has asked MP to provide a revolving fund equivalent to at least 15 per cent of the procurement cost of sanctioned quantity and ensure that the payment is made directly in the bank account of farmers from whom procurement are made within 3 days of procurement.

“However, the reimbursement of cost of providing such revolving fund will be as per PSS guidelines,” it said. For making payment of procurement expenses against this sanction order, central nodal agency, based on supporting documents, may withdraw funds from the cash credit account, backed by the Government Guarantee, it said.

After State Congress President Jitu Patwari questioned why the Centre has not approved PSS for MP, Chouhan said the Centre is ready to approve once it receives such a request from the State government. As a result, the State Cabinet approved a proposal to request the Centre. This was not required and the State Agriculture Department could have informed the Centre on time as per earlier practice, sources said.