Engaging private players in procurement at MSP is fraught with challenges

Issues like lack of storage space for foodgrains other than white and rice and the likely losses in MSP operations are some of the issues that might prevent private players from coming forward

The Cabinet has decided to allow the entry of private players in the procurement of oilseeds on a pilot basis.

According to the decision taken on Wednesday, private players can procure oilseeds at the state-mandated Minimum Support Price (MSP) for which they would be paid a ‘service charge’ not exceeding 15 per cent of the notified support price.

Pilot project would be executed in select places once state governments agree to it. Based on the feedback, the scheme might be expanded.

Though private players are already engaged in the procurement of wheat and rice by Food Corporation of India (FCI) since the last