Economics • Indian EconomyMedium
How does the 'Bhavantar Bharpai Yojana' implemented by the Haryana government function as a market intervention mechanism for horticulture producers?
A. It compensates registered farmers for the difference between modal market sale prices and predetermined government-notified protected prices✓ Correct Answer
B. It imposes an absolute ban on the interstate movement of vegetables to artificially inflate local retail prices
C. It purchases one hundred percent of all agricultural produce at international stock exchange peak rates
D. It levies heavy punitive fines on farmers who cultivate perishable horticultural crops
💡 Solution & Explanation
Bhavantar Bharpai Yojana acts as a price deficit compensation scheme protecting horticultural farmers from sudden market price crashes by paying the differential when market prices fall below assured protected levels. This mechanism incentivizes farmers to diversify into vegetables and fruits without fearing catastrophic income loss during glut seasons. Price risk mitigation is vital for commercializing agriculture and protecting smallholder producers.
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