Farm support payment schemes, aimed at compensating farmers when market prices fall below a certain predetermined price level, work differently in different countries. The article “Price Deficiency Payments and Minimum Support Prices: A Study of Selected Crops in India” (EPW, 19 May 2018) by T Haque and P K Joshi had recommended schemes similar to the Price Loss Coverage programme of the United States as an alternative to the agricultural minimum support price programme in India. This article debates the inferences made, in particular, why price deficiency payment schemes such as the Bhavantar Bhugtan Yojana, will not reduce the food subsidy bill.
