Govt readies MSP Guarantee formula, likely to procure 3 varieties of pulses, maize at MSP if farmers opt for crop diversification

The Central Government is planning to offer farmers guaranteed procurement of pulses (tur, urad, and masoor) and maize at minimum support price (MSP) if they choose to diversify away from the paddy crop, according to sources.

According to sources, the Centre is also considering purchasing cotton at the MSP without any diversification requirements.

Government agencies such as NAFED and NCCF may enter into five-year contracts with farmers, according to official sources.

As per the sources, if farmers decide to ditch the water-guzzling paddy crop, the government may consider procuring pulses, maize, and cotton at MSP with no quantitative restrictions.

The Food and Consumer Affairs Ministry is creating a portal where farmers can register by providing information such as their Aadhaar Card number. Farmers will be required to self-certify and mention their diversification into pulse and maize crops on the portal.

Last month, a panel of three Union ministers proposed that government agencies buy these five crops at MSP for five years after reaching an agreement with farmers, as part of the government's efforts to end farmer protests at the Punjab-Haryana border. But farmer groups rejected the government's proposal and are continuing their protest.

According to sources, the government has decided to implement the proposal put forth by farmer groups in order to promote diversity.

Food and Consumer Affairs Minister Piyush Goyal, Agriculture Minister Arjun Munda, and Minister of State for Home Affairs Nityanand Rai met with farmer leaders four times to discuss their demands, which included a legal minimum support price guarantee. A large number of farmers are camping at the Punjab-Haryana border to press their claim.

"Cooperative societies like the National Cooperative Consumers Federation (NCCF) and National Agricultural Cooperative Marketing Federation of India (NAFED) will enter into a contract with farmers who grow 'tur dal', 'urad dal','masoor dal' or maize to buy their crop at MSP for next five years.

Goyal had said, "There will be no limit on the quantity (purchased) and a portal will be developed for this." 

The source emphasised the importance of diversifying away from paddy crops, which require a lot of water, in states such as Punjab and Haryana, and stated that the Centre will purchase these crops at MSP from farmers across the country.

The move would also help to increase domestic pulse production and reduce import dependence. The government also intends to increase maize production for its ethanol blending programme. It aims to discourage the use of rice in the production of alcohol.

The Centre has achieved a 12 per cent ethanol-to-petrol blend and has set a 20 per cent target for 2025.

Maize is widely used to produce ethanol around the world, according to the source.

The state-owned Cotton Corporation of India (CCI) already purchases cotton whenever cotton whenever the domestic prices fall below the MSP.

(With Agency Inputs)