The cabinet in its meeting on Wednesday is likely to discuss new minimum support price (MSP) options as well as approve 25 percent increase in ethanol prices.
There are three options for the new MSP scheme:
1) Market assurance scheme which is decentralized procurement and disposal by state agencies
2) Price deficiency and payment scheme
3) Allowing private agencies to procure in co-ordination with government agencies including Food Corporation of India (FCI) and National Agricultural Cooperative Marketing Federation of India Ltd. (NAFED).
