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Price Deficiency Payment Scheme (PDPS)

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Context:

On July 22, 2025, the Government of India approved PDPS for 162,500 metric tonnes of Totapuri mangoes from Andhra Pradesh under its Market Intervention Scheme (MIS). The move follows a direct appeal from Chief Minister Chandrababu Naidu to Union Agriculture Minister Shivraj Singh Chouhan, seeking urgent relief due to falling prices.

Key Highlights:

Objective of the Scheme

  • Address distress sale of Totapuri mangoes in:
    • Chittoor
    • Tirupati
    • Annamayya districts
  • Reason: Bumper harvest has led to sharp price decline in the local mandis.

What is PDPS?

  • PDPS (Price Deficiency Payment Scheme) is a form of direct income support.
  • Under PDPS, the government pays farmers the difference between the actual market price and a pre-decided floor price (MIP) if market prices fall below the threshold.
  • Unlike MSP-based procurement, no physical lifting of produce is involved.

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