The working group on risk management in
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| Price Support Measures ΓΌ MSP is a vital tool in helping farmers and consumers in achieving food security while extending remunerative prices to the farmers for their produce.However a number of modifications are needed to make the scheme more effective. These include: Extending MSP to all farmers, with broader crop coverage Decentralized procurement, with adequate provision of funds in advance Rationalization of State taxes Creating Revolving Fund to ensure timely availability of funds Recommendation on Market Intervention Scheme (MIS) include price fixation by an expert body, reimbursement based on actual losses and establishment of better linkages with the growing agro processing industry Modification of the Price Stabilization Fund (meant for commodities like coffee, tea, rubber & tobacco) to include crop specific acreage based slabs, increase in crops covered, enhancement in the support amount, flexibility in farmers deposits and linkages with crop insurance Creation of a Credit Risk Management Fund model for plantation crops seeks to institutionalize the credit risk of farmers in the event of adverse price movement of plantation crops. It would involve a onetime outlay of Rs crores from the central government. |