The Centre has decided to procure up to 23,250 tonnes of green gram from Karnataka at minimum support price (MSP) as the prices of the pulses slumped in the wholesale markets.
The Department of Agriculture has approved the PSS (Price Support Scheme) for procurement of maximum quantity of 23,250 tonne green gram for the kharif 2018 season in Karnataka, the Agriculture Ministry said.
The Ministry has issued instructions to central agencies such as Nafed, FCI and SFAU to undertake the procurement of green gram from state-level agencies.
Green gram prices have fallen below the MSP of Rs 6,975 per quintal fixed for the 2018-19 crop year (July-June).
The agencies will purchase only the fair average quality (FAQ) of green gram and make payment to the state-level agencies after receiving the warehouse receipts within 15 days from the closure of the procurement, an official said.
The state government has been asked to provide a revolving fund for at least 15 days and ensure that payments were made strictly to Aadhaar-linked account of farmers from whom procurement was made within three days of purchase.