Agriculture Minister Shivraj Singh Chouhan on Saturday urged states to provide suggestions for bridging the gap between consumer prices and the remuneration received by farmers for agricultural commodities.
“The farmer gets a lower price for his produce—including vegetables, fruits and other crops—at the place of production, but when it reaches big cities, it becomes very costly for consumers. How can we reduce this difference? All of us should ponder this,” Chouhan said while addressing a pre-budget meeting with state agriculture ministers.
To lower the cost of agricultural production, Chouhan announced that the government will bear the cost of transportation and storage for crops like onions, tomatoes and potatoes when procured directly from farmers by agencies such as Nafed.
“If we want to increase farmers’ income, we need to look at ways to reduce the cost of cultivation,” he said.
A recent study by the Reserve Bank of India (RBI) and ICRIER had revealed that wholesalers and retailers are pocketing nearly two-thirds of the amount consumers pay for vegetables and fruits in the market.
The minister also invited states to suggest improvements or modifications to ongoing central schemes in the farm sector. He also invited state ministers to meet him in Delhi to discuss state-specific issues.
“If there is any suggestion or amendment required in relation to the budget or ongoing schemes, provide necessary feedback,” Chouhan said.
Chouhan highlighted the expected growth of the agriculture and allied sector at 3.5–4% in 2024-25, a significant increase from 1.4% in FY24.
Regarding the progress of flagship programs, he stated that under the Pradhan Mantri Kisan Samman Nidhi (PM-Kisan) scheme, launched in February 2019, more than ₹3.46 lakh crore has been transferred to the bank accounts of 110 million farmers in 18 installments.
Under this direct cash transfer scheme, farmers receive ₹6,000 annually in three four-monthly installments. He also noted that proposals worth ₹51,700 crore under the Agri Infrastructure Fund (AIF) have been approved for over 85,000 projects since its launch four years ago.
On the six-point strategy to boost the agriculture sector, Chouhan said that steps are being taken to boost productivity through releasing improved seeds varieties from Indian Council for Agricultural Research besides initiative measures like promotion of micro irrigation, farm mechanisation, use of technology and introduction of new methods of agriculture.