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Government Takes Measures to Protect Farmers from Distress Sales

The Centre has approved the procurement of 20 lakh tonnes of potatoes in Uttar Pradesh at a market intervention price of Rs 6,500.90 per tonne. This decision is expected to cost the exchequer Rs 203.15 crore. The move is part of a broader effort to safeguard farmers from distress sales across multiple states.

In a separate decision, the Union Agriculture Ministry has increased the procurement limit for gram in Andhra Pradesh to 1.13 lakh tonnes. This is up from the existing cap of 94,500 tonnes. This move aims to provide farmers with additional opportunities to sell their produce at the Minimum Support Price (MSP).

StateExisting Procurement LimitNew Procurement Limit
Andhra Pradesh94,500 tonnes1.13 lakh tonnes

Read also: Treasury Yields Experience Largest Increase in Two Weeks Following Release of Labor Market Data

In Karnataka, the procurement window for tur has been extended to May 15 under the Price Support Scheme (PSS). This will give farmers additional time to sell their produce at the MSP. The decision is expected to allow a larger number of tur farmers to access remunerative prices and avoid being forced into distress sales.

The decisions were taken amid recurring concerns over farmers receiving prices below the MSP in spot markets, particularly during peak harvest periods when supply surges. The Union Agriculture Ministry said that the moves were aimed at ensuring farmers receive a fair price and are never compelled to sell their crops at distressingly low prices.

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