IMPLEMENTATION LEVEL

National

AFFECTED FLOW

Inflow

ANNOUNCED AS TEMPORARY

Yes

NON-TRADE-RELATED RATIONALE

No

ELIGIBLE FIRMS

all

JUMBO

No

TARIFF PEAK

No
← back to the state act
Inception date: 28 Feb 2018 | Removal date: 31 Mar 2022
Still in force

Price stabilisation

On 28 February 2018, the Indian Cabinet Committee on Economic Affairs doubled the guarantee provided to banks for providing credit to the National Agricultural Cooperative Marketing Federation of India (NAFED). The guarantee has been increased from INR 9,500 crore (~USD 1456 million) to INR 19,000 crore (~USD 2913 million)* and is provided for 5 years i.e. 2017-2018 to 2021-2022 with an exemption of a government fee of 1%.

The NAFED uses these loans for the procurement operations of pulses, oilseeds, and cotton under the Price Support Scheme (PSS). The PSS provides an opportunity for farmers to sell their produce to the government at the Minimum Support Prices (MSP), in case the prices fall below the declared MSP.

The pulses covered under the MSP are Moongs, Urad and Tur (Arhar) and the oilseeds covered are Groundnut, Sunflower, Soyabean, Sesamum and Nigerseed.

* INR to USD conversion as on 28 February 2018 - INR 65.22/USD

AFFECTED COUNTRIES

MAP
TABLE
EXPORT

AFFECTED SECTORS AND PRODUCTS

014 Oilseeds & oleaginous fruits
1207 Other oil seeds and oleaginous fruits, whether or not broken.
120740 Sesamum seeds
120799 Other
017 Pulses (dried leguminous vegetables)
0713 Dried leguminous vegetables, shelled, whether or not skinned or split.
071390 Other

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