New Mango Price Scheme
The Government of India introduced a market intervention price for mango farmers in Karnataka. This initiative aims to support farmers facing financial difficulties due to falling market prices. The Centre has set the intervention price at ₹1,616 per quintal, applicable for up to 2.5 lakh tonnes of mangoes. This decision follows appeals from state officials and farmers for urgent assistance.
Market Intervention Scheme
The Market Intervention Scheme (MIS) is designed to stabilise prices for agricultural produce. It allows the government to intervene when market prices drop below a certain level. The scheme ensures that farmers receive a minimum support price (MSP) for their crops. This is crucial for maintaining farmers’ livelihoods and preventing distress in rural areas.
Price Deficiency Payment System
The Price Deficiency Payment System (PDPS) was proposed by the Niti Aayog. It aims to compensate farmers when market prices fall below the MSP. Under this system, farmers receive a portion of the difference between the MSP and the market price. For instance, if the MSP is ₹1,500 and the market price is ₹1,200, farmers could receive 70% of the ₹300 difference. This approach reduces the need for government procurement and storage of crops.
Registration Process for Farmers
Farmers wishing to benefit from the PDPS must register with their local Agricultural Produce Market Committee (APMC) Mandi. They need to report the total area sown. Payments are credited directly to the farmers’ bank accounts linked to their Aadhar numbers. This Direct Benefit Transfer (DBT) system ensures timely financial support.
Impacts on Agricultural Practices
The introduction of the PDPS is expected to make agricultural practices more responsive to market demands. By providing financial support directly to farmers, the scheme encourages them to adjust their cropping patterns. This flexibility can lead to better alignment with consumer needs, ultimately benefiting both farmers and consumers.
Government and Farmer Reactions
The announcement of the new price scheme has been welcomed by farmers and agricultural associations. Neelaturu Chinnappa Reddy, president of the Kolar District Mango Growers’ Association, expressed satisfaction with the decision. He urged continued support from both the Centre and the State to ensure the welfare of farmers.
Future of Agricultural Subsidies
The PDPS is seen as a potential way to control government spending on food subsidies. By reducing the need for physical procurement and storage, the scheme could streamline the subsidy system. It aims to ensure that farmers receive adequate support while also managing the financial burden on the government.
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