State begins Price Deficiency Payment system for onion
- Price Deficiency Payment system will apply to markets in Gadag, Bagalkot, Dharwad, and Belagavi districts from November 28 to December 12
- The scheme is expected to cost ₹50 crore to ₹75 crore
- Karnataka has taken a new step in market intervention to bail out farmers during price crash by commencing Price Deficiency Payment system for onion, whose price has plummeted.
- Under this system, farmers get monetary compensation during crash in price of their produce, which is equivalent to the difference between market price and the government-announced minimum support price, through direct transfer to bank accounts.
- Presently, such a system is in practice only in Madhya Pradesh and Haryana. While Madhya Pradesh has introduced it only for foodgrains and oil seeds, Haryana has taken it up on an experimental basis for perishables.
- Karnataka is the first State implementing the new system in a full-fledged manner for perishable commodity like onion, said Karnataka Agricultural Price Commission chairman T.N. Prakash Kammaradi.
