Cash aid may replace agri distress buying

Shift from distress buying to help solve storage issues

The Centre is exploring a mechanism to assist states in depositing the losses suffered by farmers into their bank accounts, instead of purchasing their produce.

The move would give some relief to the states, which were finding it difficult to dispose tonnes of onions, pulses and other commodities purchased from growers during a price crash. This, officials said, would also eliminate the problem of storing and transportation of purchased commodities and minimise the possibility of manipulation of the terms and conditions of purchase and sale.

"If the states can develop a mechanism through which the farmers can be directly compensated