Under this scheme, if the sale price is below a modal price then the farmers may be compensated to the difference between MSP and actual price subject to a ceiling which may not exceed 25 per cent of the MSP. No compensation would be due if modal price in neighbouring states is above the MSP. Third option related to private procurement and stockist scheme, which relates to procurement by private entrepreneurs at MSP and government providing some policy and tax incentives and a commission to such private entities which may be decided on the basis of transparent criteria and bidding for the empanelment of private players by the State Government to do the procurement operations. Shekhawat said in the statement that more than one options may be adopted by the States depending upon their conditions. Third option of private procurement and stockist scheme offered great promise as it reduces the fiscal implications for the government, involves private entities as partners in agriculture marketing and improves the competition in the market. The governments liabilities for storage and post procurement management and disposal are also avoided. However, all the three options may not be implemented for the same crop, he added. NITI Aayog Vice Chairman brought it upfront to all the States to immediately modify the APMC acts and implement the Model APLMC Act, 2017. He also emphasised the states' responsibility in efficiently implementing the schemes. As regards the incentives to the private entities, he opined to think about a mechanism of providing the some commission to private procurement agencies if they procure on MSP and abide by other terms of the government. It was decided to modify the concepts quickly on the basis of the suggestions of the States and finalize the mechanism as early as possible preferably by March end, it added.
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