Executive Summary:
This document presents the Indian government's response to a parliamentary question regarding relief measures for mango farmers, particularly in Karnataka. It clarifies the government's role in supporting food processing units and outlines the Market Intervention Scheme (MIS) as a mechanism to protect farmers from distress sales due to price drops. The document details available financial assistance and options for state governments to support farmers, including price differential payments and reimbursement of storage and transportation costs.
Key Points / Main Content:
* **Food Processing Units:**
* The government does not directly establish fruit processing units.
* Financial assistance is available under various schemes for setting up food processing units, including in Karnataka.
* Public-Private Partnership (PPP) projects for horticulture produce handling, storage, processing, and preservation are underway in specific districts of Karnataka.
* **Market Intervention Scheme (MIS):**
* MIS is implemented to provide remunerative prices to farmers of perishable horticultural commodities not covered under the Price Support Scheme (PSS).
* The scheme aims to prevent distress sales during peak arrival periods when prices fall below economic levels.
* A 10% decrease in market prices compared to the previous normal year is a condition for intervention.
* State/UT governments must request implementation and bear 50% (25% for North Eastern States) of any losses incurred.
* **Price Differential Payment (PDP):**
* A new component under MIS from the 2024-25 season allows direct payment of the price difference between the Market Intervention Price (MIP) and the selling price to farmers of perishable crops.
* States/UTs can choose between physical procurement or differential payment.
* **Storage and Transportation Cost Reimbursement:**
* From the 2024-25 season, the government will reimburse storage and transportation costs for Tomato, Onion, and Potato (TOP) crops.
* This reimbursement applies to central nodal agencies/state-designated agencies transporting these crops from producing to consuming states.
Impact Analysis:
* **Mango Farmers:**
* Impact: Benefit from potential support through the Market Intervention Scheme (MIS) if prices fall significantly. They may also benefit from new policies regarding price differentials.
* Action Required: Engage with their State government to advocate for the implementation of MIS and provide information about potential losses and price drops.
* **State/UT Governments:**
* Impact: Responsible for requesting and co-funding the Market Intervention Scheme (MIS). Have the option to implement the new Price Differential Payment (PDP) component and utilize storage and transportation cost reimbursement for TOP crops.
* Action Required: Assess the need for MIS, allocate funds for their share of potential losses, decide on physical procurement or PDP, and designate agencies for TOP crop transportation.
* **Central Nodal/State Designated Agencies:**
* Impact: Responsible for transporting TOP crops from producing to consuming states and are eligible for reimbursement of storage and transportation costs.
* Action Required: Transport TOP crops efficiently and submit claims for reimbursement according to government guidelines.
Key Entities Referenced
Karnataka: A state in India, mentioned in the context of setting up fruit processing units and implementation of schemes.
Ramanagara district: A district in Karnataka, specifically mentioned regarding mango crop losses and compensation disbursement.
Market Intervention Scheme (MIS): A scheme implemented by the Government to provide remunerative prices to farmers for perishable agricultural and horticultural commodities.
PMAASHA: Refers to Pradhan Mantri Annadata Aay Sanrakshan Abhiyan, an overarching scheme to ensure fair prices for farmers' produce, under which MIS is a component.
Price Support Scheme (PSS): A scheme for procurement of agricultural commodities that are not perishable.
Price Differential Payment (PDP): A component under the Market Intervention Scheme (MIS) for direct payment of the price difference between the Market Intervention Price (MIP) and the selling price to the farmers.
Bangalore south district: A district in Karnataka where multi horticulture produce handling, storage, processing and preservation units under Public Private Partnership PPP projects have been taken up in Channapatna taluk.
Haveri district: A district in Karnataka where multi horticulture produce handling, storage, processing and preservation units under Public Private Partnership PPP projects have been taken up in Hanagal taluk.
GOVERNMENT OF INDIA
MINISTRY OF AGRICULTURE AND FARMERS WELFARE
DEPARTMENT OF AGRICULTURE AND FARMERS WELFARE
LOK SABHA
UNSTARRED QUESTION NO. 1383
TO BE ANSWERED ON THE 29TH JULY, 2025
RELIEF MEASURES TO SUPPORT MANGO FARMERS
1383. DR. C N MANJUNATH:
Will the Minister of AGRICULTURE AND FARMERS WELFARE कृ िष एवं िकसान क(cid:670)ाण मं(cid:361)ी be
pleased to state:
(a) whether there is any proposal by the Government to set up fruit processing units in the
State of Karnataka, especially to support mango growers, who are suffering year after
year due to a sudden and sharp fall in mango prices, if so, the details theroef;
(b) whether the Government is aware that mango farmers are unable to recover even the
basic cultivation and transportation costs, leading to severe financial distress;
(c) whether any special relief measures or compensation have been proposed for mango
crop losses, particularly in Ramanagara district, where crop loss has reportedly touched
70 % to 80 % and no compensation has been disbursed so far; and
(d) if so, the details thereof, and if not, the reasons therefor?
ANSWER
THE MINISTER OF STATE FOR AGRICULTURE AND FARMERS WELFARE
कृ िष एवं िकसान क(cid:670)ाण रा(cid:475) मं(cid:361)ी (SHRI RAMNATH THAKUR)
(a): Government does not setup fruit processing units of its own. However, Government is
implementing various schemes under which financial assistance is provided for setting up of
Food Processing units in the country including in the State of Karnataka. Further, as per the
information received from State government, multi horticulture produce handling, storage,
processing and preservation units under Public Private Partnership (PPP) projects have been
taken up in Channapatna taluk of Bangalore south district and Hanagal taluk of Haveri
district.
(b) to (d): To provide remunerative price to the farmers, Governments implements Market
Intervention Scheme (MIS), a component under PM-AASHA, for procurement of agricultural
and horticultural commodities, which are perishable in nature and are not covered under the
Price Support Scheme (PSS). The objective of intervention is to protect the growers of these
commodities from making distress sale in the event of a bumper crop during the peak arrival
period when the prices tend to fall below economic levels and the cost of production. The
condition is that there should be at least a 10 percent decrease in the ruling market prices
over the previous normal year. The scheme is implemented at the request of a State/UT
government, which is ready to bear 50 percent of the loss (25 percent in case of North-
Eastern States), if any, incurred on its implementation.
Government has introduced a new component of Price Differential
Payment (PDP) under Market intervention scheme (MIS) from 2024-25 season for direct
payment of the price difference between the Market Intervention Price (MIP) and the selling
price to the farmers of perishable crops. States/UTs have an option to choose either to do
physical procurement of the crop or to make the differential payment between the MIP & Sale
Price to the farmers.
Further, from 2024-25 season, Government added another component under Market
intervention scheme for reimbursing the Storage and Transportation cost of TOP
crops (Tomato, Onion and Potato) to central nodal agencies & state designated agenceis for
transporting them from the producing state to consuming states in the interest of the farmers.
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