The government has decided to follow the Madhya Pradesh’s model of the deficit price payment scheme, an ambitious project under which farmers are proposed to be compensated for the difference between the government-announced MSPs for select crops and their actual market prices.
Last year, the Niti Aayog had released a three-year agenda for the Centre, with a focus on doubling farmers’ income. It had also suggested ‘Price Deficiency Payment’ system to address the gaps in Minimum Support Price (MSP) based procurement of crops.
For crops such as rice and wheat where it is effective now, MSP announcements will continue.
Following a sharp fall in crop prices over the 2016, which fuelled farmer protests in Madhya Pradesh, the state government had launched the price deficiency scheme last year which directly compensates farmers when they sell their produce below MSP set by the government.
Named Mukhya Mantri Bhavantar Bhugtan Yojana, the deficit price payment scheme saw an impressive enrolment of over 1.9 million of the 6.5 million growers of oilseeds and pulses in the state, according to Mint.