Centre Plans Pilot Scheme to Address Price Crashes for TOP Farmers

Farmers, traders and customers weave through waist-high heaps of chili peppers, piles of ginger and mounds of carrots at a government-run wholesale market in western India.

VoM News Desk | November 26, 2023 | 11:03 PM IST | Breaking News | Follow on Google News

Centre Plans Pilot Scheme to Address Price Crashes for TOP Farmers

Centre Plans Pilot Scheme to Address Price Crashes for TOP Farmers

In response to frequent price crashes experienced by tomato, onion, and potato (TOP) farmers, the Central Government is developing a pilot scheme to mitigate logistics challenges for these perishable crops. This initiative, set to be conducted under the agriculture ministry’s market intervention scheme (MIS), aims to provide relief to farmers by addressing key issues in the supply chain.

Challenges in Transport Subsidy and Storage

While India’s Operation Greens project, supported by the ministry of food processing industries, offers significant support for storage facilities and freight subsidies for TOP crops, there have been practical difficulties, especially in transport subsidy. The lack of cooperatives or nodal agencies for purchasing, transporting, and selling these crops in different locations when prices fall has been a major impediment. Presently, market intervention proposals need to come from state governments and farmer bodies, which is a rare occurrence.

Committee Formed to Refine TOP Scheme

A committee under the agriculture ministry has been formed to examine these challenges and draft an effective plan for the TOP scheme. The committee’s recommendations will determine the future course of action. The agriculture ministry’s MIS enables government agencies to purchase crops at times of surplus to prevent distress sales. Agencies like the National Agricultural Cooperative Marketing Federation of India Ltd (Nafed) and the National Cooperative Consumers’ Federation of India Ltd (NCCF) are involved in crop procurement and sales. Unlike cereals, pulses, and oilseeds, there is no MSP-based procurement system for vegetables, making such interventions crucial.

Operation Greens and Integrated Development of TOP Value Chain

The TOP scheme, part of Operation Greens, was announced in the Union Budget 2018-19 and later expanded to include 22 perishable crops. The agriculture ministry is reportedly in discussions with the food processing industries ministry to take over a scheme for the integrated development of the TOP value chain, aiming to create a more efficient and supportive ecosystem for these crucial crops.

VoM News Desk

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