The Meghalaya government has taken a significant step to enhance the stability of agricultural income of farmers by formulating the CM-ASSURE scheme, a targeted market intervention initiative focused exclusively on non-perishable commodities. This scheme aims to address the challenges of price volatility that small and marginal farmers in Meghalaya face, particularly during periods of market downturns.
However, the scheme is designed to provide distress relief by ensuring that farmers receive a fixed procurement price for only non-perishable agricultural produce with longer post-harvest shelf lives, such as ginger, turmeric, and arecanut, allowing farmers to manage their produce without immediate pressure to sell when market prices fall significantly.
While this proactive measure is intended to prevent distress sales and stabilize farmers’ incomes, it is to be highlighted that there has never been any macro study estimating the extent of distress sale in the State or any reliable data as to what causes the practice.
The government has assured to set a procurement price that covers cultivation costs and ensures a marginal profit for farmers, thereby safeguarding their financial interests during market fluctuations. It is also to be ensured that the government price support does not fall deficient and should be a guaranteed and attractive price at which farmers are interested to sell their produce.
The CM-ASSURE scheme will be activated only during instances of price decline for the specified non-perishable commodities with the state-level committee tasked to assess market prices of various agri-commodities and determine when the scheme should be activated. What is also required for the government to note is how extensive market manipulation is affecting the overall earning of the farmers, average earning of the household and developing solutions.
Under the scheme local farmer collectives and community-based organizations will serve as aggregation hubs, with the Meghalaya State Agriculture Marketing Board (MSAMB) overseeing coordination and implementation. Payments will be made directly to farmers through DBT, ensuring timely financial support.
A dedicated fund of INR 100 Crore will be established to facilitate procurement and cover administrative expenses.
The government has also laid down the proposed plan for the current year as broom grass and arecanut crops have particularly been affected by decline in market prices last year. As these are two of the primary crops that contribute to the socio-economic development of many farmers in the state, the scheme will be implemented for these two crops this year, which it said will potentially benefit over 20,000 farmers.
While the initiative marks a strategic response by the Government of Meghalaya to create a more resilient agricultural sector capable of withstanding market fluctuations, it is also important to address market manipulation tactics such as price fixing, cornering the market, and spreading false information which can distort price signals and undermine market transparency.
