Expecting a higher production of oil seeds and pulses, the government Friday nominated the National Cooperative Consumer Federation of India (NCCF), the Central Warehousing Corporation (CWC) and other public sector undertakings and cooperatives as central procurement agencies.
The Cabinet Committee on Economic Affairs approved the nomination of these organisations under the price support scheme (PSS) to farmers.
"The involvement of public sector undertakings/cooperatives in the procurement operation as and when situation requires will ensure minimum support price to the farmers for their produce, under the PSS in a more effective manner," said the agriculture ministry in a statement here.
At present, only the National Agricultural Cooperative Marketing Federation of India Ltd (NAFED) was procuring the pulses and oil seeds under the PSS.
NCCF is a national level consumer cooperative organization engaged in the supply support to the consumer cooperative and distributing agencies of consumer goods to the consumers at reasonable and affordable rates. Similarly, CWC, a public sector undertaking has a strong network of storage facilities.
The government believes its programmes such as Accelerated Pulses Production Programme (A3P), Integrated Scheme of Oil seeds, Pulses, Oil PaIm and Maize (ISOPOM) would result in increased production of oil seeds and pulses.
"In view of this, it has been felt that more agencies are required in the procurement operation under PSS to provide Minimum Support Price (MSP) to the farmers by strengthening the system of procurement. This would also create a more competitive environment for procurement operations resulting into better quality of service to the farmers and lower cost to the government," said the ministry.