The Hindu : Andhra Pradesh News : `Market intervention scheme for chilli'

Online edition of India's National Newspaper
Monday, Apr 11, 2005

Andhra Pradesh

Andhra Pradesh

`Market intervention scheme for chilli'

By Our Special Correspondent

HYDERABAD, APRIL 10. The Centre has sanctioned Market Intervention Scheme (MIS) for procurement of 30,000 tonnes of chillis in the State from March 23 to May 31, the Union Agriculture Minister, Sharad Pawar, said.

Responding to the representation of Congress MP, D. Purandeswari, regarding the hardship faced by chilli farmers, he said that his Ministry in consultation with the State Government had sanctioned the scheme for procurement of 5,000 tonnes of chillis of premium variety at Rs.2,700 per quintal and 25,000 tonnes of common variety at Rs.2500 per quintal.

Equal procurement

As per the sanction order issued on March 29, the stipulated quantity would be procured by the Central and State agencies on 50:50 basis. In case of non-participation of NAFED, the State agency may procure over and above its allotted quota subject to the total allowed quantity of 30,000 tonnes.

The losses, if any, will be shared on 50:50 basis between the Central and the State Government.

The loss is restricted up to 25 per cent of the procurement cost, including the permissible overheads.

The order said that only Fair Average Quality will be procured and the purchase centres/areas will be decided by the State Government in consultation with the Central/State agency.

The stocks will be purchased from the cooperative societies, farmers organisations or directly from farmers to eliminate the possibility of middlemen taking advantage of the scheme.

Referring to the implementation of MIS, Ms.Purandeswari urged the Chief Minister, Y.S.Rajasekhara Reddy, to do the needful in view of the hardship faced by the farmers.

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