Nomination of agencies in addition to NAFED under PSS for procurement of oilseeds and pulses as central agency

The Cabinet Committee on Economic Affairs today approved the nomination of National Cooperative Consumer Federation of India Ltd. (NCCF), Central Warehousing Corporation (CWC), other public sector undertaking and cooperatives as central agencies for procurement of oilseeds and pulses in addition to NAFED under Price Support Scheme (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 involvement of other public sector undertaking/cooperatives in the procurement operation as and when situation requires will ensure minimum support price to the farmers for their produce, under PSS in a more effective manner.

NAFED, a national level cooperative marketing organization has been designated as central nodal agency for procurement of oilseeds and pulses under PSS since 1976-77. Further, NAFED has also been designated as an additional agency for procurement of cotton during Kharif season 2004-05.

The Government of India has taken important initiatives for improving productivity and production of oil seeds and pulses in the country. These includes programmes such as National Food Security Mission (NFSM), Rashtriya Krishi Vikas Yojna (RKVY), Accelerated Pulses Production Programme (A3P), Integrated Scheme of Oil seeds, Pulses, Oil PaIm and Maize (ISOPOM). These initiatives are expected to bring significant increase in the 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.

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HS/SKS