Mr. Siddaramaiah urged the PM to extend the Price Deficiency Payment scheme under the Market Intervention Scheme to Karnataka. The scheme is available in neighbouring Andhra Pradesh.
| Photo Credit: G N Rao
Karnataka Chief Minister Siddaramaiah has written to Prime Minister Narendra Modi and Union Agriculture Minister Shivraj Singh Chouhan urging them to implement the Price Deficiency Payment (PDP) scheme under Market Intervention Scheme (MIS) in aid of red chilli farmers in the State.
In his letter, the Chief Minister expressed anguish over lakhs of red chilli farmers, particularly in the Kalyana Karnataka region, facing an ‘unprecedented crisis’ due to a drastic fall in prices.
Mr. Siddaramaiah said that the government of India had approved the PDP scheme under the MIS for red chillies (Guntur variety) in Andhra Pradesh, fixing the Minimum Intervention Price (MIP) at ₹11,781 per quintal with coverage for up to 25% of production. “While this is a welcome step, the distress faced by Karnataka’s red chilli farmers remains unaddressed,” he stated in the letter dated March 10.
He highlighted that in Karnataka, the cost of production for Guntur variety of red chillies (rain-fed) has been assessed at ₹12,675 per quintal by the Karnataka Agricultural Price Commission. “However, farmers are forced to sell their produce for as low as ₹8,300 per quintal. This not only results in massive financial losses, but also threatens their survival,” he said.
The Chief Minister emphasised that the Kalyana Karnataka region, one of the most backward and drought-prone areas in the country, is home to thousands of small and marginal farmers dependent on red chilli cultivation.
“The continued neglect of their plight will only deepen the economic distress and push many farmers into a debt crisis. It is therefore imperative that the Union Government extends the Price Deficiency Payment scheme under the Market Intervention Scheme to Karnataka, ensuring parity with Andhra Pradesh,” he said.
He further emphasised the need for modification to the existing scheme to better serve farmers, including increasing MIP to ₹13,500 per quintal. “The current MIP of ₹11,781 per quintal is inadequate considering the rising input costs and the significantly higher cost of production in Karnataka,” he said. He also sought expansion of coverage to at least 75% of production to provide ‘meaningful relief’.
Mr. Siddaramaiah also urged the Union Government to bear the full burden of PDP, which, as per the existing scheme, is shared equally between the Centre and State.
“The price of red chillies is largely dependent on the Union Government’s domestic and export policies, which directly influence market stability and farmer earnings,” he said.
Published – March 11, 2025 01:04 pm IST
