iGrain India - The Central Agriculture Ministry has announced a relaxation in the quality standards for soybean purchased under the Price Support Scheme (PSS) for the current season. Previously, only soybeans with a maximum moisture content of 12% were eligible for purchase at the Minimum Support Price (MSP). However, under the new decision, soybeans with moisture content up to 15% will now be allowed for purchase.
This decision aims to speed up the soybean procurement process, which had been delayed due to disputes over moisture content. Several states, including Gujarat, Maharashtra, Madhya Pradesh, Telangana, Rajasthan, and Karnataka, had requested this relaxation to help ease the procurement challenges.
Key Points of the Decision:
Moisture Content Relaxation: Soybeans with moisture content up to 15% can now be purchased under PSS, up from the earlier 12% limit.
Cost Implications: The Central Government clarified that it would only pay the MSP based on a maximum moisture content of 12%. Any loss in weight due to the higher moisture content (above 12%) will be borne by the state governments, not the central government.
Price Support: The authorized agencies, NAFED and NCCF, will purchase the soybeans based on the 12% moisture content and will collect the additional amount required for the higher moisture from the state governments.
MSP Price: The government has set the MSP for soybean at Rs 4892 per quintal for FAQ category soybeans, which should have moisture content between 8% and 12%.
State Responsibility: While central agencies will pay for soybeans with up to 12% moisture, provincial agencies will cover the full MSP cost, ensuring that farmers receive the appropriate price despite the higher moisture content.
This policy change aims to increase the speed of soybean procurement, addressing the backlog caused by moisture-related disputes, and to support farmers during the ongoing harvest season. However, it places some additional financial responsibility on the state governments for the higher moisture content in the soybeans.