Lok Sabha Question No. 71 (STARRED), answered on 2017-02-07
Subject: Distress Sale of Agricultural Produce
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: M. K. RAGHAVAN, HARISH CHANDRA MEENA

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

## LOK  SABHA STARRED QUESTION NO. 71

TO BE ANSWERED ON THE 7 TH  FEBRUARY, 2017

## DISTRESS SALE OF AGRICULTURAL PRODUCE

- *71.     SHRI M.K. RAGHAVAN: SHRI HARISH MEENA:

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

- (a) whether widespread distress sale of agricultural produce including vegetables have been reported in the rural areas due to demonetisation and also for want of remunerative prices and if so, the details thereof;
- (b) whether  the  agriculture  labourers  have  reportedly  been  idle/retrenched  due  to demonetisation and if so the details thereof;
- (c) whether the Government has analysed the financial losses suffered by farmers due to demonetisation and if so, the details thereof; and
- (d) the  steps  taken  by  the  Government  to  provide  compensation  and  adequate remunerative prices to the farmers?

## ANSWER

## MINISTER OF AGRICULTURE AND FARMERS WELFARE

कृ ष एवं कसान कयाण ½ãâ¨ããè (SHRI RADHA MOHAN SINGH) (a) to (d): A statement is laid on the Table of the House.

## STATEMENT REFERRED TO IN REPLY TO PARTS (a) TO (d) OF LOK SABHA STARRED QUESTION NO.  71  DUE FOR REPLY ON 7 TH  FEBRUARY, 2017.

(a):     No widespread distress sale of agricultural produce including that of vegetables has been reported in the rural areas due to demonetisation. Price is determined by demand and supply and  Government  has  in  place  a  mechanism    to  protect  the  farmers  from  distress  sale  by procuring  agricultural  produce  through  Central/State  agencies  under  Price  Support  Scheme (PSS)  and  Market  Intervention  Scheme  (MIS),  when  price  of  these  commodities  fall  below Minimum Support Price and Cost of Production respectively.  The payments to the farmers are made strictly through Real Time Gross Settlement (RTGS)/National Electronic Fund Transfer (NEFT) and account payee cheque by the procuring agencies.

(b): No  such retrenchment of  the agriculture labourers  has  been reported. The  total  area sown under five major crop-categories in Rabi was higher than the same period last year.

(c): Question does not arise.

(d):        There was no situation that warranted payment of compensation to the farmers.

As regards ensuring remunerative prices to the farmers, Government has been working on  improving  the  marketing  environment  in  the  Agriculture  Produce  Market  Committee (APMCs) markets.  With this objective, Government has launched eNAM on 14.04.2016, under which online trading of agriculture produce is being undertaken. By now 250 number of APMCs have been integrated on the electronic National Agriculture Market (eNAM)  platform. Government is also working  on  a  new  APMC  Model  Act  with  a  view  to  creating  an  efficient agriculture  marketing  system  in  the  country  and  enable  the  farmers  to  realise  remunerative prices.

Apart  from  the  above,  Government  also  notifies  Minimum  Support  Price  (MSP) for  23 commodities  covering  both  Kharif  and  Rabi  seasons.    The  Government  has  put  in  place  a system  of  procurement,  whenever  price  fall  below  MSP.    Procurement  operations  are undertaken  by  FCI  in  case  of  wheat  and  paddy.  Under  Price  Support  Scheme  (PSS), procurement  of  pulses  and  oilseeds  is  undertaken  whenever  State  Governments  report  that prices have fallen below MSP. National Agricultural Cooperative Marketing Federation of India (NAFED) undertakes such procurement.  In case of perishable commodities where MSP is not notified,  procurement  is  undertaken  under  Market  Intervention  Scheme  (MIS).  In  addition, procurement  undertaken  by  Department  of  Consumer  Affairs  under  Price  Stabilisation  Fund (PSF) is also found to be useful in assisting the farmers remunerative price.

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