RCF is the second top gainer on the BSE. The stock price rose almost 18% to Rs.79.85 and volumes were very high at over 12.5 lakh shares changing hands compared to 2-week average of around 2 lakh shares.
Elections are round the corner! The Govt finally gave its approval to the new procurement policy for crops. This will ensure that farmer does get the minimum support price (MSP).
The new mechanism is expected to be crop specific. One scheme will focus on compensating oilseeds farmers if rates fall below the MSP, and another will allow states to rope in private players for procurement.
The State Govts will be given an option to choose multiple schemes to protect farmers when prices fall below the MSP.
The states can choose either PSS or PDP or engage private players in procurement to ensure MSP to farmers.