During the meeting, held through a video conference, Chauhan also sought state agriculture ministers’ suggestions for the union budget 2025-26.
Union Agriculture Minister Shivraj Singh Chouhan has sought the state governments’ suggestions to reduce the gap between the price paid by consumers and amount received by farmers for various agricultural produce, including fruits and vegetables.
He was addressing agriculture ministers of states during a pre-budget meeting on Saturday.
“I want to discuss one more subject with you. We are also contemplating seriously on this issue. The farmer gets a lower price for his produce including vegetables, fruits and other produce, where he grows, but when it reaches in big cities, it becomes very costly for consumers. How can we reduce this difference? All of us should ponder on this,” Chouhan said.
To reduce the burden of the transportation cost, it has been decided that the government will bear the cost of transportation for the agricultural produce like onion, tomatoes and potato procured by government agencies NAFED directly from farmers, Chouhan said, adding that there are several such suggestions in his mind.
Chouhan’s move to seek states’ suggestions to reduce the gap between the price paid by consumers and amount get by farmers is significant in view of the findings of a recent study by Reserve Bank of India (RBI) that said wholesalers and retailers are pocketing almost 2/3 of what consumers pay to buy vegetables and fruits from the market.
An analysis of farmers’ share in consumer rupee for the three key vegetables – tomato, onion and potato (TOP) – stated that farmers are getting around only one third of the price that a consumer is paying, according to studies on vegetables, pulses and fruits inflation conducted by the Reserve Bank of India (RBI).
The farmers’ share in the consumer rupee is estimated at around 33 per cent for tomato, 36 per cent for onion and 37 per cent for potato, the study said.
During the meeting, held through a video conference, Chouhan also sought state agriculture ministers’ suggestions for the union budget 2025-26.
He urged states to suggest ways to improve and modify the ongoing central schemes in the farm sector. He also invited state ministers to have separate meeting with him in Delhi to discuss any issue related to with their states.
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