The Karnataka Agricultural Prices Commission (KAPC) has decided to recommend to the State government that it approach the Centre with a proposal to implement the Price Deficiency Payment system to quickly reach out to farmers during a price crash.
Under this system, farmers get monetary compensation during crash in price of their produce, which would be equivalent to the difference between market price and the government-announced minimum support price, by direct transfer to bank accounts. This system is presently being implemented on an experimental basis in Madhya Pradesh and Haryana for some crops.
KAPC chairman T.N. Prakash Kammaradi told The Hindu that the commission had decided to take up the issue after the Union government officials made a detailed presentation on the scheme in Bengaluru on Thursday.
To begin with, the commission wants the scheme to be implemented for tomato and onion. The commission is also keen to see if the Centre considers oil seeds for inclusion in the scheme, he said. “Declaration of MSPs is one thing. But ensuring their implementation for farmers is crucial. In this context, Price Deficiency Payment system helps in taking the benefits to farmers effectively and quickly,” Dr. Kammaradi said. A part of the amount would be borne by the Centre, while the State would have to bear the remaining part, he said.
However, the major requirement for implementing the system is that the State will have to implement the Contract Farming Act. “The commission will study the pros and cons of such an Act and its impact,” Dr. Kammaradi said.