Lok Sabha Question No. 2227 (UNSTARRED), answered on 2018-07-31
Subject: Programme to End Distress Sale of Farmers
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: V. SATHYABAMA, MANOJ RAJORIA

## GOVERNMENT OF INDIA MINISTRY OF AGRICULTURE AND FARMERS WELFARE DEPARTMENT OF AGRICULTURE, COOPERATION AND FARMERS WELFARE

## LOK  SABHA UNSTARRED QUESTION NO.2227

TO BE ANSWERED ON THE 31 ST   JULY, 2018

## PROGRAMME TO END DISTRESS SALE OF FARMERS

2227.  SHRIMATI V. SATHYA BAMA: DR. MANOJ RAJORIA:

Will the Minister of AGRICULTURE AND FARMERS WELFARE कृ षि एवं ककसान कल्याण मंत्री be pleased to state:

- (a) whether the Government has launched or planning to launch any programme/scheme that  aims to end/ minimise distress sales by farmers of agro-produce including tomato, onion and potato;
- (b) if  so,  the  details  thereof  along  with  the  quantum  of  agro  produce  procurred  by  the Government during the last three years to reduce the impact of distress sale; and
- (c) if not, the reasons therefor and the other alternative measures of the Government to end the distress sales?

## ANSWER

## MINISTER OF STATE IN THE MINISTRY OF AGRICULTURE AND FARMERS WELFARE

कृ षि एवं ककसान कल्याण मंत्रालय में राज्य मंत्री (SHRI  GAJENDRA SINGH SEKHAWAT)

- (a) to (c): Yes,  in  pursuance  of  the  recent  Budget  announcements,  Ministry  of  Food Processing Industries is formulating a new Scheme to launch 'Operation Greens' for tomato, onion  and  potato  crops  to  promote  Farmer  Producers  Organization  (FPOs),  agri-logistics, processing facilities and professional management with an allocation of Rs.500 crore. Presently, the ministry is doing inter-ministerial consultations for finalizing the scheme.

Ministry of Agriculture and Farmers Welfare is implementing Market Intervention Scheme (MIS)  for  procurement  of  agriculture  and  horticultural  commodities,  which  are  generally perishable  in  nature  and  are  not  covered  under  Price  Support  Scheme  (PSS).  The  basic objective of MIS is to protect the growers of these Commodities from making distress sale in the event of a bumper crop during the peak arrival period when the prices tend to fall below the economic levels and cost of production. The condition is that there should be either at least a 10 percent  increase  in  production  or  10  percent  decrease  in  the  ruling  market  prices  over  the previous  normal  year.    The  scheme  is  implemented  on  the  specific  request  of  the  State Government/UTs. Government which is ready to bear 50 percent of the loss (25 percent in case of North-Eastern States), if any, incurred on its implementation. The Extent of total amount of loss to be shared on a 50:50 basis between the central government and the State Govt. /UT, is restricted  to  25  percent  of  the  total  procurement  value  which  includes  cost  of  the  commodity procured  plus  permitted   overhead   expenses.    Under   the Scheme, in accordance with MIS

guidelines, a pre-determined quantity at the fixed Market Intervention Price (MIP) proposed by the State Govt. /UT, is procured by agency designated by the State Govt. /UT, for a fixed period or  till  the  prices  are  stabilized  above  the  MIP,  whichever  is  earlier.  The  area  of  operation  is restricted to the concerned state only. The sanctions accorded under MIS from 2016-2017 to 2018-2019 is attached at annexure.

Ministry  of  Consumer  Affairs  is  implementing  Price  Stabilization  Fund  (PSF),  to  tackle inflationary  trends  of  important  agri-horticultural  commodities  like  onion,  potato  and  pulses  to protect the interests of consumers. Through Price Stabilization Fund (PSF), around 32000 MT of  onion  during  2015-16  to  2017-2018  has  been  procured.  NAFED  was  directed  to  procure 25000 MT of onion during 2018-19, till date NAFED has procured around 10000 MT of onion.

Annexure

## Details of Sanction accorded under MIS from 2016-17 to 2018-19

| Year    | Period                   | Commodity      | State             | Market Intervention Price (MIP) (Rs. Per MTs.)   | Sanctioned Qty (in MTs.)   |
|---------|--------------------------|----------------|-------------------|--------------------------------------------------|----------------------------|
| 2016-17 | 01.09.2016 to 30.09.2016 | Grapes         | Mizoram           | 42,000                                           | 3,800                      |
| 2016-17 | 01.11.2016 to 30.11.2016 | Onion          | Karnataka         | 6240                                             | 1,00,000                   |
| 2016-17 | 01.12.2016 to 30.12.2016 | Onion          | Telangana         | 7070                                             | 5,000                      |
| 2016-17 | 07.12.2016 TO 14.02.2017 | Arecanut-Chali | Karnataka         | 2,51,000                                         | 28,000                     |
| 2016-17 | 07.12.2016 TO 14.02.2017 | Arecanut-Red   | Karnataka         | 2,70,000                                         | 12,000                     |
| 2016-17 | 14.12.2016 to 12.01.2017 | Oil Palm FFB   | Tamil Nadu        | 7650                                             | 1,000                      |
| 2016-17 | 17.02.2017 to 18.03.2017 | Ginger         | Arunachal Pradesh | 8570                                             | 12,675                     |
| 2017-18 | 08.04.2017 to 07.05.2017 | Potato         | Uttar Pradesh     | 4,870                                            | 1,00,000                   |
| 2017-18 | 02.05.2017 to 31.05.2017 | Red Chilli     | Telangana         | 50,000                                           | 33,700                     |
| 2017-18 | 02.05.2017 to 31.05.2017 | Red Chilli     | Andhra Pradesh    | 50,000                                           | 88,300                     |
| 2017-18 | 04.06.2017 to 03.07.2017 | Potato         | Nagaland          | 6,000                                            | 6,600                      |
| 2017-18 | 17.06.2017 to 16.07.2017 | Turmeric       | Andhra Pradesh    | 55,720                                           | 12,100                     |
| 2017-18 | 13.06.2017 to 12.07.2017 | Garlic         | Rajasthan         | 28,600                                           | 10,000                     |
| 2017-18 | 09.06.2017 to 08.07.2017 | Onion          | Madhya Pradesh    | 5,867                                            | 3,25,500                   |
| 2017-18 | 09.06.2017 to 08.07.2017 | Onion          | Madhya Pradesh    | 5,867                                            | 3,25,500                   |
| 2017-18 | 27.06.2017 to 26.07.2017 | Onion          | Rajasthan         | 3,650                                            | 20,000                     |
| 2017-18 | 02.03.2018 to 31.03.2018 | Potato         | Uttar Pradesh     | 5,490                                            | 2,00,000                   |
| 2018-19 | 13.04.2018 to 20.06.2018 | Garlic         | Rajasthan         | 32,570                                           | 1,54,000                   |
| 2018-19 | 13.04.2018 to 12.05.2018 | Onion          | Rajasthan         | 6,180                                            | 2,60,000                   |

********