Kerala Basic Price Scheme 2020

Kerala has always been a proponent of fair and equitable practices to be followed across various walks of life. To live up to their standards, the Kerala government launched the Basic Price scheme, thereby becoming the first state to launch the scheme in India.

The Basic Price scheme 2020 is meant to be for Vegetables and other listed crops from the 1st of November 2020. According to this scheme, the state government of Kerala has decided to fix a basic price for a variety of vegetables and some other locally grown perishable produce.

This scheme is an attempt to ensure price stability and an assured income for farmers who are facing the brunt of lockdown more than those from the middle-class segments of the society. The basic price for around 16 farm commodities will come into effect from the 1st of November after the cabinet discussed it in their meeting on the 21st of October 2020.

Commodities included in the Basic Price Scheme 2020

The commodities included in the Basic Price scheme of 2020 are bananas, tapioca, cucumber, snake gourd, bitter gourd, ash gourd, tomato, lady’s finger, cabbage, carrot, potato, beans, beetroot, garlic and pineapple.

These commodities will now be available at a definitive base price which are decided by the committee specially appointed for the same. The price would be determined on the basis of production and productivity of the common varieties of those commodities.

Implementation of the scheme

The Basic Price Scheme in Kerala comes right when it was needed the most. The price would be implemented by the State Agriculture dept with the support of Local bodies and the State cooperation department. All the crops would ideally be procured by wholesale village markets which would be run by primary agricultural cooperative societies and government agencies as the Vegetable and Fruit Promotion Council Kerala (VFPCK) and the HORTICORP.

An entire market is to be opened in every panchayat for the benefit of farmers and consumers alike, across the state of Kerala.

How does basic price prove to be better than production cost?

The Basic Price scheme is meant to assure farmers of a decent basic price whenever the market price of farm commodities tends to fall below it. The basic price of commodities would at least be 20 percent more than the production cost incurred by the farmers.

The Kerala government intends to help farmers and protect them from the massive price fluctuations in the market price. Through this scheme, the Kerala government also aims to provide a boost to the vegetable production in the state.

In conclusion

With the implementation of the Basic Price scheme, farmers all around the state can be surer about the amount they would be making by selling off their produce. Market fluctuations would no longer affect farmers and consumers alike, as they would manage to procure produce at the same base price, thereby leading to smarter consumers and more financially stable farmers, ending up to be a win-win for all in the long run.

Similar Yojanas

Schemes launched by the state government

The state governments of India are the next important government bodies right after the central government of the country. The state governments constitute 28 states and 8 union territories

India is a democratic and republic country wherein highest authorities and powers are proffered to the central government. For the state government, real executive powers are given to Chief Minister as he is responsible for heading the Council of Ministers. The state governments of India work toward internal security, such as police department, social welfare, public health betterment and other similar state-related issues. The state government of the country earns its employee income from sales tax services, stamp duty services, and from some parts of GST.

The state governments have launched a variety of schemes so far. Some of the examples are as follows:

In Andhra Pradesh, Chandranna Bima Yojana, National Energy Efficient Agriculture Pumps Program, and Smart Pulse Survey have been launched. In Assam, Mass Rapid Transit System has been recently launched. In Maharashtra, Police Pratisaad Ask services and various schemes for the betterment of farmers have been launched. In Karnataka, PM Santwana Harish Yojana, and Housing scheme for Transgenders have been launched. In Uttar Pradesh, Deen Dayal Upadhyay Gram Jyoti Yojana, Hausla Paushan scheme, and Swadhar Greh yojana have been launched.

The state government of India monitors both rural and urban development. However, it is not feasible for the state government to monitor all rural and urban local government bodies. Thus, based on the provided funding and coverage, rural and urban local entities create development plan whenever required. These government entities work in close association with planning commission and local or regional government sectors and authorities.

Apart from these schemes, the state government also ensures the effective implementation of centrally sponsored schemes in respective states.