Vol. 8, Issue 4 (2019)

Author(s):
Shubhi Patel and Rakesh Singh

Abstract:
The farmers at the receiving end do not get remunerative prices shadowed by the inefficient marketing and dominance of middlemen and traders. The government of Madhya Pradesh introduced price deficit financing scheme to propose a solution to the enlarging gap between the whole sale prices and minimum support prices of certain crops. Price Deficit Financing Scheme (Bhawantar Bhugtan Yojana) was implemented in Madhya Pradesh on a pilot basis since kharif 2017. This paper tries to review the scheme as well as assess its impact. According to this scheme, price deficit between the minimum support price and modal (wholesale) price is paid directly to the account of farmers. Notification of crops, registrations, calculation of modal price and defict payment are the parts of the scheme. Thus, the scheme if implemented successfully can prove beneficial to both farmers and government.