Lok Sabha Question No. 797 (UNSTARRED), answered on 2017-02-07
Subject: Foodgrains procured from States
Ministry: CONSUMER AFFAIRS, FOOD AND PUBLIC DISTRIBUTION
Asked by: RAJESHBHAI NARANBHAI CHUDASAMA, MALLIKARJUN  KHARGE

## MINISTRY OF CONSUMER AFFAIRS, FOOD & PUBLIC DISTRIBUTION

## GOVERNMENT OF INDIA DEPARTMENT OF FOOD AND PUBLIC DISTRIBUTION

LOK SABHA UNSTARRED QUESTION NO. 797

TO BE ANSWERED ON 07 th  FEBRUARY, 2017

## FOODGRAINS PROCURED FROM STATES

## 797.  SHRI RAJESHBHAI CHUDASAMA: SHRI MALLIKARJUN KHARGE:

Will the Minister of CONSUMER AFFAIRS, FOOD AND PUBLIC DISTRIBUTION miHkksDrk ekeys] [kk| vkSj lkoZtfud forj.k ea=h be pleased to state:

- (a) the quantum of foodgrains procured by the Government from each State especially from Gujarat, year-wise during the last three years;
- (b) whether  due  to  lower  procurement  price  for  foodgrains  under  MSP during last two years, the farmers were forced to sell their produce to private agencies and if so, the details thereof;
- (c) whether the Government proposes to increase the MPS for procurement at  par  with  the  price  of  foodgrains  sold  in  the  open  market  so  as  to  provide benefit to the farmers; and
- (d) if so, the details thereof and the action taken by the Government in this regard?

A N S W E R MINISTER OF STATE FOR  CONSUMER AFFAIRS, FOOD & PUBLIC DISTRIBUTION (SHRI C. R. CHAUDHARY)

- (a):  The  State-wise  procurement  of  paddy/rice  and  wheat  for  central  pool during  last  three  years  including  Gujarat  is  enclosed  as  Annexure-I  &  II
- (b):  No,  Madam.  There  is  a  Uniform  Policy  for  procurement  by  Government Agencies across the country. Under this policy, food grains offered by farmers, conforming to within stipulated period specifications prescribed are purchased at Minimum Support Price (MSP) by the State Government agencies including  Food  Corporation  of  India  (FCI)  for  Central  Pool.  However,  if producer/farmer get better price in comparison to MSP, they are free to sell their  produce in open market i.e. to private trader/ anyone. The objective of procurement by Government agencies is to ensure that farmers get remunerative prices for their produce thereby avoiding distress sale.

(c)  &  (d):  Government  fixes  the  Minimum  Support  Prices  (MSPs)  of  various foodgrains for procurement by Government Agencies based on the recommendation  of  Commission  for  Agricultural  Costs  and  Prices  (CACP), views of State Governments, concerned Central Ministries and other relevant factors. While formulating its recommendations  on  price policy,  CACP considers various important factors that include cost of cultivation, trends in market  prices,  demand  and  supply  situation,  effect  on  general  price  level, effect on cost of living etc. Government of India (GOI) declares MSP for each season to incentivize the farmers.

The MSP of Wheat and Paddy in the last 3 years are as follows: (Rs/Qtl)

|         | Wheat   | Paddy   | Paddy   |
|---------|---------|---------|---------|
|         |         | Common  | Grade A |
| 2014-15 | 1400    | 1360    | 1400    |
| 2015-16 | 1450    | 1410    | 1450    |
| 2016-17 | 1525    | 1470    | 1510    |

The MSP over the past years shows an increasing trend.

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## ANNEXURE-I

## ANNEX REFERRED TO IN REPLY TO PART (a) OF UNSTARRED QUESTION NO 797 TO BE ANSWERED ON 7 th  FEBRUARY, 2017 IN LOK SABHA.

Procurement of Rice for Central Pool during last three years

(Fig. in LMT)

| S.No.   | STATES/ UTs      |   KMS 2013-14 |   KMS 2014- 15 |   KMS 2015- 16 |
|---------|------------------|---------------|----------------|----------------|
| 1       | Andhra Pradesh   |         37.37 |          35.96 |          43.36 |
| 2       | Telangana        |         43.53 |          35.04 |          15.79 |
| 3       | Assam            |          0    |           0.15 |           0.42 |
| 4       | Bihar            |          9.42 |          16.14 |          12.25 |
| 5       | Chandigarh       |          0.12 |           0.1  |           0.16 |
| 6       | Chattisgarh      |         42.9  |          34.23 |          34.42 |
| 7       | Delhi            |          0    |           0    |           0    |
| 8       | Gujarat          |          0    |           0    |           0.01 |
| 9       | Haryana          |         24.06 |          20.15 |          28.61 |
| 10      | Himachal Pradesh |          0    |           0    |           0    |
| 11      | Jharkhand        |          0    |           0.06 |           2.06 |
| 12      | Jammu & Kashmir  |          0    |           0    |           0.07 |
| 13      | Karnataka        |          0    |           0.88 |           0.55 |
| 14      | Kerala           |          3.59 |           3.74 |           3.82 |
| 15      | Madhya Pradesh   |         10.45 |           8.07 |           8.49 |
| 16      | Maharashtra      |          1.61 |           1.99 |           2.29 |
| 17      | Nagaland         |          0    |           0    |           0    |
| 18      | Odisha           |         28.01 |          33.57 |          33.69 |
| 19      | Pondicherry      |          0    |           0    |           0    |
| 20      | Punjab           |         81.06 |          77.86 |          93.5  |
| 21      | Rajasthan        |          0    |           0    |           0    |
| 22      | Tamilnadu        |          6.84 |          10.51 |          11.92 |
| 23      | Uttar Pradesh    |         11.27 |          16.98 |          29.1  |
| 24      | Uttarakhand      |          4.63 |           4.65 |           5.98 |
| 25      | West Bengal      |         13.59 |          20.32 |          15.68 |
| Total   | Total            |        318.45 |         320.4  |         342.17 |

Rice include paddy in terms of Rice

***

## ANNEXUERE-II

ANNEX REFERRED TO IN REPLY TO PART (a) OF UNSTARRED QUESTION NO 797 TO BE ANSWERED ON 7 th  FEBRUARY, 2017 IN LOK SABHA.

## Procurement of Wheat for Central Pool during last three years

| SL No   | STATES/ Uts    | RMS 2014-15   |   RMS 2015-16 |   (Fig. in LMT) RMS 2016-17 |
|---------|----------------|---------------|---------------|-----------------------------|
| 1       | Punjab         | 116.41        |        103.44 |                      106.49 |
| 2       | Haryana        | 64.95         |         67.78 |                       67.52 |
| 3       | Uttar Pradesh  | 6.28          |         22.67 |                        7.97 |
| 4       | Madhya Pradesh | 70.94         |         73.09 |                       39.92 |
| 5       | Bihar          | -             |          0    |                        0    |
| 6       | Rajasthan      | 21.59         |         13    |                        7.62 |
| 7       | Uttrakhand     | 0.01          |          0.04 |                        0.02 |
| 8       | Chandigarh     | 0.05          |          0.11 |                        0.07 |
| 9       | Delhi          | -             |          0.02 |                        0    |
| 10      | Gujarat        |               |          0.73 |                        0    |
| TOTAL   | TOTAL          | 280.23        |        280.88 |                      229.61 |

***