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Off-the-cuff suggestion.
Let 100% of the agricultural produce be purchased by the private players, through open-market auction in the State-controlled mandis. (1/n) thread.
Let 100% of the agricultural produce be purchased by the private players, through open-market auction in the State-controlled mandis. (1/n) thread.
2. In the event the price discovered through this market mechanism is lower than the notified MSP, let the Government of India pay the differential amount to the farmer immediately and simultaneously. (2/n)
3. The farmer effectively gets the MSP, irrespective of who is the purchaser and what is the purchase price.
The liability of the Government of India is very significantly curtailed, and they do not need to store and transport anything more than the required buffer stock. (3/n)
The liability of the Government of India is very significantly curtailed, and they do not need to store and transport anything more than the required buffer stock. (3/n)
4. The private players are able to buy only through a transparent market auction, and it is in the interest of the Government of India and the State government to ensure that there is no pooling by the private players/cartels to depress the prices artificially.(4/n)
5. The state agencies shall be at liberty to buy at MSP, in order to break such cartels.
The “artiyas” continue to get their 2.5% commission as well as an effectively escrow account securing the servicing of their formal/informal loans to the farmer. (5/n)
The “artiyas” continue to get their 2.5% commission as well as an effectively escrow account securing the servicing of their formal/informal loans to the farmer. (5/n)
6. The Mandi Board/ Market Committees continue to get their market fee and the other cesses.
State Governments such as that of Punjab needn’t borrow humongous amounts of money through an RBI-mediated short-term loan from a banks, to immediately pay for the farmers produce.(6/n)
State Governments such as that of Punjab needn’t borrow humongous amounts of money through an RBI-mediated short-term loan from a banks, to immediately pay for the farmers produce.(6/n)
7. This also prevents subsequent disputes between the GOI and the State Governments, regarding the agency/ handling charges booked. These ballooned to Rs 30,000/- crore in the case of Punjab and ultimately fell to the lap of Punjab Government as debt. (7/n)
8. FCI can then focus on liquidating old stock through public distribution system, while complying with the provisions of Food Security Act.
The GOI can separately consider providing Income Tax breaks to Agro-processing industries, that are established hereinafter. (8/n).
The GOI can separately consider providing Income Tax breaks to Agro-processing industries, that are established hereinafter. (8/n).
Suggestions and criticism welcome— trolls kindly excuse. CONCLUDED. 
