Centre, Karnataka Launch Compensation Plan to Offset Drastic Fall in Mango Prices

In a significant move aimed at alleviating the financial distress faced by mango farmers in Karnataka, the Union and State governments have jointly launched a compensation initiative to offset the drastic fall in mango prices — particularly the Totapuri variety. This major policy step was announced after a virtual meeting held on Saturday between Union Minister for Agriculture, Farmers’ Welfare, and Rural Development Shri Shivraj Singh Chouhan and Karnataka’s Agriculture Minister Shri N. Chaluvaraya Swamy. Union Agriculture Secretary Shri Devesh Chaturvedi also participated in the discussions.

Joint Compensation Plan Finalized

At the heart of the decision lies the commitment to compensate the price differential experienced by farmers for up to 2.5 lakh metric tonnes of mangoes. Karnataka had earlier submitted a proposal to the Centre flagging severe market price drops, particularly for Totapuri mangoes — a variety widely cultivated and exported. While the state’s total mango production stands at nearly 10 lakh metric tonnes, the relief measure will cover a quarter of this volume.

Both governments will share the burden of the price differential under an existing central scheme, meaning the difference between the expected market price and the actual price received by farmers will be borne equally. This approach is designed to provide quick financial relief to growers who are reeling under the combined pressure of surplus produce and weak demand.

Why the Intervention Was Urgent

Mango prices in Karnataka have been in a sustained decline due to several overlapping factors including overproduction, supply chain disruptions, and lower-than-expected demand in domestic and international markets. The Totapuri variety — widely used in pulp processing and exports — has seen some of the steepest price declines.

The state government’s data showed that market prices in several key mandis fell well below the cost of production. This not only threatened the livelihood of farmers but also risked large-scale dumping of produce, leading to further losses and wastage.

No Immediate Action on Tomatoes

During the meeting, Minister Chaluvaraya Swamy clarified that while tomatoes were also part of the original proposal, their prices have since recovered, stabilizing at market-acceptable levels. Hence, no further intervention is currently planned for tomato growers under this scheme.

A Gesture of Gratitude and Cooperation

Expressing gratitude, Minister Swamy thanked Union Minister Shri Shivraj Singh Chouhan for his swift response and support, noting that such inter-governmental coordination is vital for sustaining the agricultural economy during periods of crisis. This initiative is expected to not only stabilize farmers’ incomes but also restore confidence among horticulture producers in Karnataka.

Next Steps

The Centre and State are expected to coordinate closely on implementation mechanisms including price benchmarking, direct benefit transfers (DBT), and monitoring to ensure fair and timely compensation reaches the affected farmers. Additional guidelines on eligibility and documentation are expected to be released in the coming weeks.

This joint move underscores the government’s broader agenda of responsive governance in agriculture, especially in a year when climate volatility and market imbalances have impacted several crop categories.