Kerala CM Pinarayi Vijayan announced that Kerala becomes the first state in the country to set floor prices for 16 varieties of vegetables. This scheme would be effective from November 1, 2020 in the state.
He while addressing through video conferencing said, “This is the first time the floor price is being fixed for vegetables produced in the state and this is the first for a state in the country also. This is going to provide relief as well as support for the farmers. Farmers across the country are not satisfied but for the last four and half years, we have supported the farmers and the government has taken up several initiatives primarily targeted at the development of agriculture in the state.”
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16 varieties of vegetables in which base price has been fixed by state government includes in the first phase:
Tapioca (Rs 12), Banana (Rs 30), Wayanadan banana (Rs 24), Pineapple (Rs 15), Ashgourd (Rs 9), Cucumber (Rs 8), Bitter gourd (Rs 30), Snake gourd (Rs 16), Tomato (Rs 8), Beans nadan (vallipayar) (Rs 34), Lady’s finger (Rs 20), Cabbage (Rs 11), Carrot (Rs 21), Potato (Rs 20), Beans (Rs 28), Beetroot (Rs 21), and Garlic (Rs 139).
How Base Price Mechanism Will Work?
Base Price Mechanism will work same as MSP works for commodity market as government will procure the commodity from farmers at the base price. But if the price of the fruits and vegetables are below base price, therefore the amount will be credited to the farmer.
CM Vijayan said, “The floor price will be 20% above the production cost of the vegetable. Even if the market price goes below the floor price, the produce will be procured at the floor price from the farmers. The produce will be graded as per the quality and the floor price will be fixed based on the quality. 16 varieties of vegetables would be covered in the first phase and there is a provision to revise the floor price on a regular basis.”
LSG bodies have an important role to play as they’ll monitoring and coordinating the procurement and distribution of vegetables. Scheme would benefit the farmer with a maximum of 15 acres of vegetable cultivation per season. The scheme also envisages setting up the entire supply chain process like cold storage facilities and refrigerated vehicles for transporting the produce.
For more information: www.aims.kerala.gov.in