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Minimum Threshold Parameters (MTPs) to ensure farmers' benefit, says govt

Minimum Threshold Parameters (MTPs) to ensure farmers' benefit, says govt

The introduction of Minimum Threshold Parameters (MTPs) in procurement operations is necessitated to avoid middlemen in procurement and ensure that farmers get the best value for their produce.

In view of the benefit of farmers along with keeping traders and middlemen at bay, the Department of Food and Public Distribution has developed an application ecosystem that allows the integration of procurement portals of all state governments having Minimum Threshold Parameters (MTPs) for monitoring and strategic decision making.

The process began with the onset of KMS (Kharif Marketing Season) 2021-22 in October 2021. The introduction of Minimum Threshold Parameters (MTPs) in procurement operations is necessitated to avoid middlemen in procurement and ensure that farmers get the best value for their produce.

The integration with the central portal will go a long way in expediting the reconciliation of procurement figures with states and the release of funds by the central government to states, the ministry said in a statement.

The benefits will be reaped by the society in general, but there are specific benefits envisaged for stakeholders. Farmers will now be able to sell their produce at suitable prices and avoid distress sales, it added.

Procuring agencies and the Food Corporation of India (FCI) will be able to procure efficiently with limited resources at hand. The automation and standardisation of procurement operations shall provide an integrated view of the procurement of food grains and their storage in godowns.

There is a varied scale of implementation of information technology (IT) based tools across the states. However, because of the prioritisation of the local requirements and practices, a pan- India standard procurement ecosystem was non-existing.

Due to variations in the procurement systems, there emerge both systemic and implementation challenges for implementing the schemes of the central government.

Reconciliation of the procurement operations with various states, is sometimes a long-drawn exercise, leading to delays in the release of funds to states. Moreover, the non-standard procurement operations also lead to avoidable inefficiencies, which manifest in the form of middlemen in the procurement operations, the ministry added.

The Centre puts emphasis on the welfare of the farmers and MSP based procurement is the traditional approach to ensure that the farmers get the appropriate selling price for their produce.

This helps attain the objectives of the government and the implementation of the National Food Security Act. Standardisation of operations is essential in helping the country achieve greater levels of transparency and efficiency in procurement operations, which lead to ensuring food security for the people of the country, the ministry noted.

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