Summary:
Under the MSP scheme, the government procures 15% to 20% of the total production, while under Bhavantar, the government has to pay for 100% of production which becomes very expensive. Last year, the central government raised the MSP of groundnut to Rs 4,980 a quintal, an increase of Rs 440 a quintal from the previous year. The government procured groundnut at high prices from farmers and also paid more for the procurement process. The government argued it would discourage farmers who grew high-quality crops.President of Khedut Hit Rakshak Samiti in Devbhoomi Dwarka, Pala Ambalia, said, “During the groundnut procurement process earlier this year the government overlooked quality. In short, government has to pay for all agricultural produce, which is not possible.”.