The escalation of input costs is emerging as a new challenge for farm sector which has time and again reeled under distress in Karnataka. While several sectors are hit by inflation, impact on agriculture and allied sectors has been severe mainly because of “imperfect market”, say experts.
For example, while mango farmers thought that they would get remunerative prices this time due to short supply marked by decrease in yield by over 50%, they were in for a shock when traders slashed the procurement prices by 75% of the prevailing level. Added to it, they rejected several consignments citing diseases associated with untimely rains that affected the fruit quality.
