Table of Contents
Kerala will become first state to launch Basic Price Scheme 2020 for Vegetables and Other Listed Crops from 1 November 2020. The state govt. has decided to fix basic price for variety of vegetables and some other locally grown perishable products. This is a measure to ensure price stability and an assured income for small farmers. The basic price for 16 farm commodities will come into effect in Kerala from 1 November 2020 as decided in State Cabinet meeting on 21 October 2020.
Kerala Basic Price Scheme 2020
In the Kerala Basic Price Scheme, the prices will be decided by the specially appointed committees. This price would be determined on the basis of production cost and productivity of the common varieties. It includes banana, tapioca, cucumber, snake gourd, bitter gourd, ash gourd, tomato, lady’s finger, cabbage, carrot, potato, beans, beetroot, garlic and pineapple.
Basic Price Vs Production Cost
The Basic Price Scheme is meant to assure farmers of a decent basic price whenever the market price of farm commodities falls below it. The basic price of the commodities would be at least 20 per cent more than the production cost incurred by the farmers. Kerala govt. hopes to help protect farmers from wide fluctuations in market price and provide boost to vegetable production in the state. Kerala is currently dependent on other states for a large share of its food and vegetable needs.
Implementation of Basic Price Scheme in Kerala
The Basic Price Scheme in Kerala would be implemented by the State Agriculture Dept with the support of local bodies and State Cooperation Department. All the listed crops would be procured by wholesale village markets run by primary agricultural cooperative societies and government agencies such as the Vegetable and Fruit Promotion Council Kerala (VFPCK) and HORTICORP. One such market is to be opened in every panchayat in the state of Kerala.
READ MORE: Kerala Govt. Schemes
Procurement of Listed Crops in Basic Price Scheme 1st Phase
In the 1st phase, the primary agriculture cooperatives will procure the listed crops from farmers directly through 250 such wholesale markets. Each farmer will be eligible for the basic price benefit for produce from 15 acres only per season. Whenever the market price goes below the basic price, local bodies would provide a gap fund to the primary cooperatives engaged in procurement. Local-level committees headed by the chairperson of the local body concerned and the president of the primary cooperative society will be established to take decisions in this matter.
Agriculture and Information Management System (AIMS)
All the farmers will have to register details about their crops in the Agriculture Department’s online portal. Agriculture and Information Management System (AIMS) would also be used for the following purposes:-
- Registration of farmers
- Identifying and monitoring the area and production
- Certifying local produce
Registration is also possible through the AIMS mobile app. Common operational guidelines for the procurement agencies are soon to be announced by the Agriculture Department.
Need for Basic Price Scheme in Kerala
Whenever the market price goes below the listed basic price of each crop, the price difference between the two will be directly credited into the bank accounts of the farmers by the Agriculture Department. This is to be done on the basis of the report of the procurement agency. The procured crops will then be marketed under the brand name “Jeevani Kerala Farm Fresh Fruits and Vegetables”. A state level committee would be formed to evaluate the implementation of Basic Price Scheme in Kerala.
Kerala govt. will revise the basic price of each crop in a timely manner and is going to bring more crops within its ambit. A final decision on any revision of basic price will be taken by the government on the basis of the recommendation of the State-level committee.