Trade and markets
 

Detail

Area
India
Commodity Group
Oilseeds, oils and meals
Commodity
Oilseeds, pulses
Date
01/08/2017
Policy Category
Consumption and marketing
Policy Instrument
Price support
Description
Announced the launch of a nationwide scheme to compensate farmers for distress sales at prices below the official minimum support prices. The scheme would only apply to oilseeds and pulses, where physical procurement by public entities tends to be limited.
Notes
The state Government of Madhya Pradesh announced the launch of a scheme to compensate farmers for distress sales at prices below the minimum support prices (MSP) that are set annually by the central Government. The scheme will initially apply to selected oilseeds and pulses, where physical procurement tends to be limited unlike for rice and wheat. The initiative comes on the back of a bumper harvest that caused crop prices to decline, triggering protests by farmers calling for loan waivers and more remunerative prices (see also MPPU July’17). Under the scheme, farmers will be compensated when crops are sold at less than the MSP. Such deficiency payments will be capped at a modal price, which is defined as the average market price observed over a two-month period in Madhya Pradesh and two other states.