It could also tell exchanges to have smaller lot sizes for trading.
The central government had constituted the MSP committee after withdrawing the three farm laws.
The committee has the mandate to discuss the farmers’ demand for a legal guarantee on MSP and making MSP more effective and transparent.
The committee is expected to submit its report soon.
“The platforms should device some filters so that trading does not take place below MSP and farmers benefit,” said a person who was present at the meeting.He added that smaller lot sizes – the quantity of the commodity which is traded in a contract – will encourage farmers’ participation. The lot size of a contract is standardized and determined by the exchange.The committee also wants the exchanges to work together with Primary Agricultural Credit Societies (PACS) to hedge the risk involved in trading, so that it becomes easier for farmers to draw benefit from it.
PACS are ground-level co-operative societies that help farmers with short and medium term credit.
There should also be funds allocated to spread awareness among farmers about trading of agri-commodities and its benefits, the person said.
Apart from MSP, the committee has also discussed plans for expansion of area under Indian Natural Farming System and chalking out marketing systems for natural farming processes and products in its earlier meetings.
It is headed by former agriculture secretary Sanjay Agrawal and has representatives from Niti Ayog, agricultural economists, other farmer organisations, agricultural scientists, representatives of central and state government, cooperatives Members of agriculture universities and award-winning farmers.
