Price Deficit Financing Scheme

Price Deficit Financing Scheme was introduced in 2017 in Madhya Pradesh, India. In this scheme the price deficit between the minimum support price and the market price is paid to the farmers by the state government. The process of availing the benefit includes registration and selling of notified crop at Agricultural Produce Marketing Committee. The scheme had significant impact on the market price of the notified crops and also the income of farmers. This study explores the impact of the scheme and constraints faced by farmers.