Government Unveils MSP Procurement Plan for Pulses, Maize, and Cotton to Encourage Crop Diversification

In a significant move to promote crop diversification and reduce dependence on water-intensive paddy cultivation, the Indian government is planning to undertake guaranteed procurement of pulses (tur, urad, and masoor) and maize at Minimum Support Price (MSP) from farmers who opt for diversification. The government is also considering procuring cotton at MSP without any condition of diversification.

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Procurement Mechanism

Government agencies such as the National Agricultural Cooperative Marketing Federation of India (NAFED) and the National Cooperative Consumers Federation (NCCF) will enter into five-year contracts with farmers for the procurement of pulses, maize, and cotton at MSP. Farmers can register on a portal created by the Ministry of Food and Consumer Affairs by providing details like their Aadhaar Card number and self-certifying their diversification into these crops.

Background and Farmers' Protest

Last month, a panel of three Union ministers proposed the procurement of these five crops by government agencies at MSP for five years after entering into an agreement with farmers. This proposal was part of the government's efforts to end farmers' protests at the Punjab-Haryana border. However, farmer groups rejected the proposal and continued their protest.

Government's Decision

Despite the rejection by farmer groups, the government has decided to implement the proposal given to farmer groups to promote crop diversity. Food and Consumer Affairs Minister Piyush Goyal, Agriculture Minister Arjun Munda, and Minister of State for Home Affairs Nityanand Rai held four rounds of talks with farmer leaders over their demands, including a legal MSP guarantee.

Cooperative Societies' Involvement

Cooperative societies like NCCF and NAFED will enter into contracts with farmers who grow tur dal, urad dal, masoor dal, or maize to purchase their crops at MSP for the next five years. There will be no limit on the quantity purchased, and a dedicated portal will be developed for this purpose.

Need for Diversification

The government emphasizes the need for diversification from water-intensive paddy crops in states like Punjab and Haryana. The Centre assures that it will procure these crops from farmers at MSP from across the country. This move aims to boost domestic production of pulses and reduce import dependence. Additionally, the government wants to enhance maize production for its ethanol blending program and discourage the use of rice for ethanol production.

The government's decision to undertake guaranteed procurement of pulses, maize, and cotton at MSP is a significant step towards promoting crop diversification, reducing import dependence, and supporting farmers' income. By providing a stable market and assured prices, the government aims to encourage farmers to shift away from water-intensive crops and adopt more sustainable farming practices.