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LATEST NEWS UPDATES | Despite Multiple Flaws, Centre Is Rushing the Bhavantar Scheme for Farmers -Sudhakar Gummula

Despite Multiple Flaws, Centre Is Rushing the Bhavantar Scheme for Farmers -Sudhakar Gummula

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published Published on Sep 19, 2018   modified Modified on Sep 19, 2018
-TheWire.in

The Price Deficiency Payment Scheme will likely exclude small and marginal farmers, disincentivise efficient farmers and does not have inadequate registration of farmers.

The Narendra Modi government announced three new schemes for farmers under one umbrella scheme named PM-AASHA, aimed at ensuring minimum guarantee prices for the farm produce.

These three schemes – Price support scheme (PSS), Pilot of Private Procurement & Stockist Scheme (PPPS) and Price Deficiency Payment Scheme (PDPS) – involves two ways of payments to farmers. The first two involve physical procurement of commodities by government and private agencies respectively, but the third scheme does not involve any physical procurement. As per a government press release, it appears that these schemes are predominantly aimed at oil seed crops and also pushed the burden of implementing two of the three schemes into state governments’ hands, with only a funding support from the Centre.

While the first two schemes are nothing but re-framed versions of MSP procurement, the price deficiency scheme is relatively new and is currently being tested in Madhya Pradesh under the name Bhavantar Bhugtan Yojana. It appears that the government is hastily expanding it without analysing its impact on farmers’ income and society as a whole.

Under the scheme, a farmer has to register the different crops he has planted (in acres) with the appropriate agency i.e. the mandi, which is supposed to be verified by a revenue official. The potential revenue of an individual farmer is calculated by multiplying the district average yield [of past few years] by the MSP announced by the government. In other words, for an individual farmer, the potential income would be the product of registered acres, district average yield and MSP.

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TheWire.in, 16 September, 2018, https://thewire.in/agriculture/despite-multiple-flaws-centre-is-rushing-the-price-deficiency-scheme-for-farmers


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