Govt readies agri reforms package

Singh, however, said the existing mechanism of providing Minimum Support Price MSP to a number of crops will continue till an alternative arrangement is worked out.

The task force has also identified appropriate legal changes for introduction of negotiable warehousing receipt system for agricultural commodities. This would mean farmers can take credit against the crops stored in warehouse.

It also envisages suitable amendments to make future trading possible so farmers can get the correct price for their products and can decide on a profitable cropping pattern. The task force has estimated an investment requirement of Rs 12,230 crores for the development of marketing, storage and cold storage during the tenth plan period.

To prevent farmers from making distress sales, the task force has recommended raising of pledge financing from the current level of Rs 1,200 crore to Rs 7,000 crore by 2007.

The committee was set up under chairmanship of Additional Secretary RCA Jain in July 2001 to suggest measures for implementing reforms in an effective manner.