Effective Coordination Required Between State and Central Agencies to Streamline Soybean Procurement

18 November 2024, New Delhi: In a move to support soybean farmers during the Kharif 2024-25 season, the Ministry of Agriculture announced a one-time relaxation in the permissible moisture content for soybean procurement under the Price Support Scheme (PSS). The revised guidelines allow procurement of soybean with up to 15% moisture content, an increase from the previously prescribed 12%. While this decision brings much-needed relief to farmers affected by erratic weather conditions, its successful implementation hinges on effective coordination between state and central agencies.

The revised procurement norms require that any additional expenses or losses incurred due to the higher moisture content be borne by the respective state governments. Central Nodal Agencies (NAFED and NCCF) are tasked with making payments to State-Level Procuring Agencies (SLAs) after adjusting for the relaxed moisture content, while farmers will still receive the full Minimum Support Price (MSP). This structure highlights the importance of seamless collaboration between the central and state authorities to ensure the smooth functioning of the procurement process.

The Ministry has also stressed the need for robust measures to preserve and handle soybean stocks with higher moisture content. Central Nodal Agencies and State-Level Procuring Agencies must adopt strict protocols to minimize storage losses and maintain the quality of the produce during transit and storage. This will require close coordination to set up appropriate storage facilities and ensure timely transportation of procured stocks.

For state governments, the responsibilities extend beyond financial support. They need to ensure timely payment to farmers, facilitate proper documentation, and streamline the logistics involved in soybean procurement. Additionally, state agencies must work in tandem with central authorities to resolve any operational challenges that may arise during the procurement process.

Farmers stand to benefit significantly from these revised norms, as they mitigate the risk of distress sales and ensure fair compensation for their produce. However, the success of this initiative depends on addressing the logistical challenges posed by higher moisture content. Efficient collaboration between central and state agencies will play a pivotal role in ensuring that farmers receive the promised benefits without delays or complications.

As the procurement season progresses, the focus remains on effective governance and operational efficiency. A well-coordinated approach will not only safeguard farmers’ interests but also strengthen the agricultural supply chain, showcasing the government’s commitment to fostering a resilient and farmer-friendly agricultural economy.

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