Multiple Choice Questions on Various state governments have launched Price deficiency payment PDP schemes to cover far........... for RAS Exam Preparation

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Indian Economic System(RAS)

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Indian Economy - Understanding the basics of Indian economic system

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     Various state governments have launched Price deficiency payment (PDP) schemes to cover farmers’ losses. Which of the following states has not implemented it?

     Madhya Pradesh

    Incorrect Answer

     Haryana

    Incorrect Answer

     Karnataka

    Incorrect Answer

     Punjab

    Correct Answer
    Explanation:

     Various PDP schemes of states

    •  Bhavantar Bhugtan Yojana (BBY) by MP: It applies to eight kharif crops — soybean, til, maize, urad, tur, moong, groundnut, ramtil
    •  The Haryana government has announced a somewhat similar scheme for 4 vegetables —potatoes, onions, tomatoes, cauliflower.
    •  Karnataka is giving a Rs 5-per-litre incentive tomilk farmers over and above the rate that dairies are paying. About Price deficiency payment (PDP) scheme
    • Under this, government support to producers does not involve direct market intervention. The market is, instead, allowed to set prices based on normal supply and demand forces while the government simply pays the difference between the MSP and the marketdetermined price.
    •  NITI Aayog in its three-year agenda has also suggested this system to address the gaps in Minimum Support Price (MSP) based procurement of crops

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