Lok Sabha Question No. 32 (STARRED), answered on 2017-07-18
Subject: Price Support Scheme
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: CHANDRA PRAKASH JOSHI

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

## LOK  SABHA

## STARRED QUESTION NO. 32

TO BE ANSWERED ON THE 18 TH  JULY, 2017

## PRICE SUPPORT SCHEME

## *32.     SHRI CHANDRA PRAKASH JOSHI:

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

- (a) whether the Government has received any proposal seeking to increase the scope of  Price  Support  Scheme  (PSS)  for  agricultural  produce  including  pulses  and  if  so,  the details thereof along with the response of the Government thereto;
- (b) whether  the  Government  has  appointed  any  research  committee  to  increase  the support price of agricultural produce and, if so, the details thereof;
- (c) if  not,  the  reasons  therefor  and  the  time  by  which  the  proposal  is  likely  to  be considered by the committee;
- (d) whether the Government has fixed the support price for pulses in conformity with the production cost of farmers in the present scenario and if so, the details thereof; and
- (e) the various steps taken by the Government to provide adequate Minimum Support Price for pulses?

## ANSWER

## MINISTER OF AGRICULTURE AND FARMERS WELFARE

कृ ष एवं कसान कयाण ½ãâ¨ããè

(SHRI RADHA MOHAN SINGH)

- (a) to (e): 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.  32  DUE FOR REPLY ON 18 TH  JULY, 2017.

(a) & (b): No, Madam.

(c): Does not arise.

(d): Yes, Madam. Government decides the MSPs for various agricultural commodities  after  examining  the  recommendations  of  Commission  for  Agricultural Costs  and  Prices  (CACP).    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.  CACP  also consults State Governments and other stakeholders.   While recommending MSPs, the CACP keeps in view (i) the need to provide incentive to the producer  for  adopting  improved  technology  and  for  developing  a  production  pattern broadly in the light of national requirements; (ii) the need to ensure rational utilization of land, water and other production resources; (iii) the likely effect of the price policy on the rest  of  the  economy,  particularly  on  the  cost  of  living,  level  of  wages,  industrial  cost structure,  etc.  and  (iv)  terms  of  trade  between  agricultural  sector  and  non-agricultural sector.  Cost of production is one of the important factors taken into account in fixing the MSPs.  The estimates of cost of cultivation/cost of production are made available to the Commission through the Comprehensive Scheme for Studying the Cost of Cultivation of Principal Crops. These  data  are  collected with the help of State Agricultural Universities/Institutions.

-2-

(e): To provide adequate Minimum Support Price for pulses, Government implements Price Support Scheme (PSS).  Under this scheme pulses of Fair Average Quality (FAQ) are procured directly from farmers through Central nodal agencies.  This scheme  is  implemented  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, including gunny bags, working capital for state agencies,  creation  of  revolving  fund  for  PSS  operations,  etc.  as  required  under  the scheme guidelines.  The procurement of pulses is undertaken by Central agencies at MSP  as  and  when  prices  fall  below  the  MSP  as  well  as  compliance  of  State Government  to  PSS  guidelines.    During  the  year  2016-17,  Government  undertook procurement operations for pulses in different States as per request.  In addition to this during Kharif 2016-17 season, Government also procured pulses at MSP through Price Stabilization Fund (PSF) scheme.

*****