Chaired by PM Modi, the Cabinet Committee on Economic Affairs has given its approval to give guarantee of Rs. 1900 crore to National Agricultural Cooperative Marketing Federation of India (NAFED) ) for obtaining credit from banks for procurement operation of pulses and oilseeds under Price Support Scheme (PSS). Earlier the limit was Rs. 9500 which has been doubled now.
For Small Farmers Agri-Business Consortium (SFAC) the guarantee limit of Rs. 45 crore has bee approved. These Government Guarantees are provided for a period of five years i.e. till 2021-22 by Govt. of India and with waiver of 1% Government Guarantee fee.
For Small Farmers Agri-Business Consortium (SFAC) the guarantee limit of Rs. 45 crore has bee approved. These Government Guarantees are provided for a period of five years i.e. till 2021-22 by Govt. of India and with waiver of 1% Government Guarantee fee.
Reasons
- The market price of almost all pulses and oilseeds are ruling below Minimum Support Price (MSP) as notified by Govt. of India, provision of Govt. The guarantee will help to protect the farmers producing these commodities from making distress sales during the peak arrival period.
- Also the government wants to provide remunerative prices with a view to encourage higher investment and production and also to safeguard the interest of consumer by making available supplies at reasonable price with low cost of intermediation.
