Market intervention scheme in karnataka: an analysis of its usefulness to the farmers
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Date
2007
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Publisher
UAS, Dharwad
Abstract
Market intervention scheme is to protect the farmers against distress sale of
agricultural / horticultural commodities known as minimum support price. This scheme is
also known as "Floor price scheme for Agricultural / horticultural commodities in
Karnataka". The study was undertaken in Dharwad and Gadag district of Karnataka, to
analyse the coverage of farmers, extent of production procured, socio-economic factors of
farmers choice and constraints faced by the farmers. Four taluks viz., Dharwad and
navalgund in Dharwad districts, Gadag and mundargi in Gadag districts were selected based
on maximum procurement of maize and onion respectively. From each taluk top two villages
accounting for maximum procurement were selected. From each village 60 farmers, 30
availing market intervention scheme (MIS) benefits and 30 not availing MIS benefits were
selected, to analyse the socio economic characteristics responsible for such distinctions. The
study employed the tabular presentation and discriminant function analysis.
The coverage of small farmers under MIS for onion and maize crops in Gadag and
Dharwad districts were around 53 percent and 52 percent respectively. Socio economic
factors influencing farmers’ choice of sale between procurement agencies and open market
sales for maize and onion were level of production, total income of the farmer and distance
from procurement center.
Total production procured under MIS in Dharwad and Gadag districts for maize and
onion crops were around 42 percent and 43 percent respectively of the total quantity sold by
small farmers. The net price received by the farmers was higher in case of procurement
centers compared to that of open market sales.
Majority of the farmers opined that fair average quality standards (FAQ), procedural
problems and delayed payments were the major constraints in availing MIS benefits.