Kerala announces base price for certain Agricultural products
Salient features of the scheme
- In order to protect farmers from price fluctuations, State government of Kerala has fixed base price for 16 agricultural items
- The scheme would come in to effect from November 1
- Agricultural items covered under the scheme would be have price which is 20% above the production cost of the vegetable
- According to the scheme, if the market price dipped below the base price of a vegetable, the produce would be procured at the base price and the money transferred to farmers’ accounts.
- The produce would be graded on quality, and the base price fixed on that basis
- Local self-government institutions would have an important role to play in the scheme as they would coordinate the procurement and distribution of vegetables.
- The scheme would benefit a farmer with cultivation on a maximum of 15 acres in a season.
- Farmers would have to register on the Agriculture Department’s registration portal after insuring the crop to get the benefit of the base price.
- Initially though, the registration would not be mandatory for farmers intending the procurement to happen through primary agricultural credit cooperative societies.
- Under the scheme, the procured produce would be sold through the department’s markets or the societies’ marketing network.
- Any excess produce would be converted into value-added products.
- The scheme also envisaged setting up of supply chain processes such as cold-storage facilities and refrigerated vehicles.