(a) whether the Government has set up/ proposes to set up a Market Price Stabilisation
Fund to protect the farmers during fluctuations in vegetable prices;
(b) if so, the details thereof; and
(c) if not, the reasons therefor?
(a) whether the Government has set up/ proposes to set up a Market Price Stabilisation
Fund to protect the farmers during fluctuations in vegetable prices;
(b) if so, the details thereof; and
(c) if not, the reasons therefor?
MINISTER OF STATE IN THE MINISTRY OF AGRICULTURE AND MINISTER OF
STATE IN THE MINISTRY OF CONSUMER AFFAIRS, FOOD AND PUBLIC
DISTRIBUTION (PROF. K.V. THOMAS)
(a) to (c): There is no Price Stabilization Fund (PSF) for vegetables but there is
Market Intervention Scheme (MIS) for procurement of horticultural and agricultural
commodities (generally perishable in nature) to protect the growers of these
commodities. The MIS is implemented when there is at least 10% increase in
production or 10% decrease in the ruling rates over the previous normal year.
Besides this, in order to alleviate the hardship faced by the growers of coffee, tea,
rubber and tobacco due to continued low prices of these commodities and to safeguard
their interests, the Government has set up a PSF and the Department of Commerce
implements the Price Stabilisation Fund Scheme. This scheme is operational from April
2003 onward, initially for a period of ten years.
The National Commission on Farmers had recommended that a Price
Stabilization Fund should be established for major commodities to support farmers,
when international prices fall by a certain percentage. Thus, pursuant to the adoption of
the NPF, the action plan in this regard has envisaged extending the PSF to all Plantation
Crops including spices. However, vegetables are not covered under PSF.