Lok Sabha Question No. 508 (STARRED), answered on 2018-04-03
Subject: Buying Farm Produce
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: KANWAR SINGH TANWAR

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

## LOK  SABHA

## STARRED QUESTION NO. 508

TO BE ANSWERED ON THE 3 RD  APRIL, 2018

## BUYING FARM PRODUCE

- *508.      SHRI KANWAR SINGH TANWAR:

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

- (a) whether  buying  farm  produce  directly  from  farmers  by  the  Government  agencies helps farmers a lot and thereby avoid middlemen and if so, the details thereof;
- (b) whether the  NITI  Aayog  has  recently  recommended  that  the  Government  should buy farm produce directly from the farmers and if so, the details of the recommendations;
- (c) whether any legislation to this effect is likely to be introduced in Parliament;
- (d) if so, the details thereof; and
- (e) whether any consultations have been held with the States in this regard and if so, the details and the outcome thereof?

## ANSWER

## MINISTER OF AGRICULTURE AND FARMERS WELFARE

## कृ ष एवं कसान कयाण

- (a) to (e):

½ãâ¨ããè (SHRI RADHA MOHAN SINGH) A statement is laid on the Table of the House.

## STATEMENT  REFERRED  TO  IN  REPLY  TO  PARTS  (a)  TO  (e)  OF  LOK  SABHA STARRED QUESTION NO. 508  DUE FOR REPLY ON 3 RD  APRIL, 2018.

(a): Yes Madam, the Government procures farm produce directly from the farmers thereby avoiding the middleman.  Under the procurement mechanism in the country, as per  the  prescribed  guidelines,    Government  agencies  procure  Oilseeds,  Pulses  and Cotton  of  Fair  Average  Quality  (FAQ)  at  Minimum  Support  Price  (MSP)  directly  from genuine  farmers  having  legitimate  land  record  to  eliminate  possibility  of  middlemen taking advantage of the scheme in consultation with the concerned State Government as and when market price of these produce fall below the MSP.  Further, payments are made through Real Time Gross Settlement (RTGS)/National Electronic Fund Transfer (NEFT)  and  account  payee  cheque  by  the  procuring  agencies  directly  into  farmers accounts.  Procurement of Wheat and Paddy is undertaken through Food Corporation of India (FCI) and State agencies across the country whenever food grains are offered by farmers within stipulated period  and conforming to the  prescribed specifications at MSP for central pool.  However, in the State of Haryana and Punjab, the procurement of wheat  and  paddy  is  being  undertaken  through  Arhatiyas  as  per  the  provisions  of relevant  Agricultural  Produce  Market  Committee  (APMC)  Act.    Arhatiyas  are  also involved in  some parts of  Rajasthan.  State  Governments of  these States have  been requested  to  do  direct  payment  to  farmers.    However,  if  farmers  get  better  price  in comparison to MSP, they are free to sell their produce in open market.

(b): No Madam.  There is already a mechanism under which Government procures produce directly from the farmers.

(c) & (d): Does not arise.

(e): Under the present mechanism, Government procures produce directly from the farmers in consultation with the concerned State Government.

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