Lok Sabha Question No. 673 (UNSTARRED), answered on 2017-12-19
Subject: Market Price Stabilisation Fund
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: NAGENDRA KUMAR PRADHAN, (ADV.) JOICE GEORGE, ANIRUDHAN SAMPATH

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

## LOK  SABHA UNSTARRED QUESTION NO.673

TO BE ANSWERED ON THE  19 TH  DECEMBER, 2017

## MARKET PRICE STABILIZATION FUND

673.   SHRI NAGENDRA KUMAR PRADHAN: ADV. JOICE GEORGE:

DR. A. SAMPATH:

Will  the  Minister  of  AGRICULTURE  AND  FARMERS  WELFARE      ‡ãðŠãäÓã एवं  कसान कयाण ½ãâ¨ããè be pleased to state:

- (a) whether the Government has taken any decision to implement recommendations of Swaminathan commission Report to address the problems of the marginal and small farmers and to provide them pension and other benefits and if so, the details thereof;
- (b) whether  the  recommendation  of  MS  Swaminathan  Commission  on  Farmers  to set up a Market Price Stabilisation Fund jointly by Union and State Governments and financial  institutions  to  protect  farmers  during  periods  of  violent  fluctuations  in  prices remains unheeded and if so, the details thereof and the reasons therefor;
- (c) whether such a fund can be set up either from the market surpluses or through an exclusively created fund for this purpose by the Government and if so, the details thereof;
- (d) whether  the  farmers  are  vulnerable  to  international  price  fluctuations  in  the country with negative reverberations and if so, the details thereof; and
- (e) whether  the  Government  is  planning  to  initiate  price  stabilization  fund  for  all agricultural produces in the country and if so, the details thereof?

## ANSWER

MINISTER OF  STATE IN THE  MINISTRY OF  AGRICULTURE AND  FARMERS  WELFARE

‡ãðŠãäÓã एवं  कसान  कयाण ½ãâ¨ããÊã¾ã  ½ãñâ  Àã·¾ã  ½ãâ¨ããè (  SHRI PARSHOTTAM RUPALA)

- (a): Based  on  the  'Draft  National  Policy  for  Farmers',  submitted  by  the Swaminathan Commission, the Government approved the National Policy for Farmers (NPF)-2007,  which  aims  to  improve  economic  viability  of  farming  and  increase  net income of farmers.

An  Inter-Ministerial  Committee  (IMC)  identified  201  Action  Points,  where necessary action had to be taken.  Of the 201 number of action points identified, 192 numbers have already been implemented as of date.

With a view to provide social security to the workers in the unorganized sector, the  Central  Government  is  implementing  several  Social  Security  Schemes  such  as Indira  Gandhi  National  Old  Age  Pension  Scheme,  Mahatma  Gandhi  National  Rural Employment Guarantee Act (MGNREGA), Rashtriya Swasthya Bima Yojana, Aam Admi Bima Yojana, Atal Pension Yojana, Pradhan Mantri Jeevan Jyoti Bima Yojana, Pradhan Mantri Suraksha Bima Yojana etc., which are also available to farmers including small and marginal farmers.

(b) & (c): As  far  as  farmers  are  concerned,  there  is  provision  of  procurement  of paddy  &  wheat  at  Minimum  Support  Price  (MSP)  through  Food  Corporation  of  India (FCI). In addition, procurement of oilseeds, pulses and cotton are undertaken by central agencies at MSP under Price Support Scheme (PSS) at the request of the concerned State  Government  which  agrees  to  exempt  the  procured  commodities  from  levy  of mandi tax and assist central nodal agencies in logistic arrangements.

Government also implements the Market Intervention Scheme  (MIS) for procurement of agriculture & horticulture  products, which are perishable in nature and are not covered under PSS. The condition is that there should be either at least a 10 percent increase in production or a 10 percent decrease in the ruling market prices over the  previous  normal  year.  The  MIS  is  implemented  at  the  request  of  a  State/UT Government,  which  is  ready  to  bear  50%  of  the  loss  (25%  in  case  of  North-Eastern States), if any, incurred on its implementation.

From the perspective of consumers, to mitigate hardship under circumstances of spurt in prices, the Government is implementing the Price Stabilization Fund (PSF) for pulses, potato & onion.

(d): Vulnerability of  farmers  depend  on  various factors.  Fluctuations  in  international markets  do  not  adversely  affect  farmers  in  all  cases.  The  Government  takes  steps, when necessary.

(e): Price Stabilization mechanism already exists as outlined in para (b) and (c) above.

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