Centre to help distressed chilli farmers in Andhra Pradesh

The Centre has ordered the clearance of the Market Intervention Scheme (MIS) with immediate effect to help distressed chilli farmers in Andhra Pradesh.

The Centre will buy chillies at Rs. 5,000 per quintal till May 31. Earlier, leaders and public representatives from Andhra Pradesh Hari Babu, along with a delegation of MPs from Andhra, Somireddy Chandramohan Reddy, Laxman, President Bharatiya Janata Party (BJP) and Kishan Reddy, where MLAs from Telangana met Union Minister, M. Venkaiah Naidu, requested for his intervention in the matter.

Naidu convened a meeting with the the Agriculture Minister, leaders of AP and Telangana and officials of Central and State Governments, wherein the crisis was comprehensively discussed.

Following detailed discussions and submission of data and statistics, the Government assured that it would come to the rescue of the states under Market Intervention Scheme.

Agriculture Ministry announced now the procurement of red chillies under MIS scheme in both the Telugu States.

Naidu said he was happy that with this decision of the Union Government farmers will not resort to distress sale at astronomically lower prices.
He expressed hope that the States would immediately swing into action and provide succor to the agitating chilli farmers, adding that the Central Government would always extend its helping hand when it comes to the issue of farmers and their livelihood.

The salient features of the scheme are given below:

•This Market Intervention Scheme will remain in force from 2.5.2017 to 31.5.2017

•A maximum quantity of 88,300 MTs of Red Chilli in Andhra Pradesh and 33,700 MTs in Telangana can be procured under the scheme by the State Agencies

•The Market Intervention Price (MIP) will be Rs.5000/- per quintal of Red Chilli with the overhead expenses of Rs.1,250/- per quintal or actual whichever is less. The overhead expenses include purchase tax, mandi tax, godown charges, packing material, loading/unloading, commission, transportation, grading, packaging /stiching charges etc.,

•The losses, if any, will be shared on 50:50 basis between the Central Government and State Governments. However, the loss is restricted up to 25% of the procurement cost (maximum limit of loss to be shared between Central and State Governments) including the permissible over heads.

•The scheme will be implemented by the State Agencies. The stocks will be purchased from the Cooperative Societies, farmers' organizations or directly from the farmers to eliminate the possibility of middlemen taking advantage of the scheme.