Lok Sabha Question No. 2900 (UNSTARRED), answered on 2018-03-13
Subject: Fair Price for Farmer’s Produce
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: C. MAHENDRAN

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

## LOK  SABHA UNSTARRED QUESTION NO. 2900

TO BE ANSWERED ON THE 13 TH  March, 2018

## FAIR PRICE FOR FARMER'S PRODUCE

2900.      SHRI C. MAHENDRAN:

Will the Minister of AGRICULTURE AND FARMERS WELFARE कृ ष एवं कसान कयाण मंी be pleased to state:

- (a) whether  the  Government  is  of  the  opinion  that  the  farmers  are  not  getting  fair  and remunerative prices for their produce and their income is not growing, if so, the details thereof;
- (b) whether  the  Government  has  any  pending  recommendations  in  this  regard,  if  so,  the details thereof;
- (c) whether  the  Government  has  any  institutional  mechanism for  price  stabilization  in  the country, if so, the details thereof; and
- (d) whether the Government is aware that the real issue is that while the cost of production is  constantly  going  up  despite  subsidies,  the  farmers  are  unable  to  get  proper  price  for  their produce, if so, the details thereof?

## ANSWER

## MINISTER OF STATE IN THE MINISTRY OF AGRICULTURE AND FARMERS WELFARE

कृ ष एवं कसान कयाण मंालय म राय मंी (SHRI  GAJENDRA SINGH SHEKHAWAT)

- (a) & (b): Government has taken several steps to ensure remunerative prices to farmers for their produce which include fixing Minimum Support Prices (MSPs) for major agricultural crops, undertaking procurement  through designated procurement agencies, implementing e-National Agriculture Market, enacting the Model Agricultural Produce and Livestock Marketing (Promotion & Facilitation) Act, 2017 and promoting Farmer Producer Organization (FPOs).

The MSPs fixed by the Government provide adequate return over weighted average cost of production (A2+FL). The return over weighted average cost of production (A2+FL) for MSPs fixed by Government for 2017-18 has been in excess of 50% with return of 112.4% for wheat, 88.4% for rapeseed/mustard, 79.6% for masur, 78.8% for gram, 66.9% for barley, 65.4% for urad, 64.3% for tur, 62.0% for jute and 50.2% for bajra.

The  Union  Budget  for  2018-19  has  announced  the  pre-determined  principle  to  keep MSPs at levels of one and half time the cost of production for kharif crops also in the lines of that already implemented for rabi crops in October 2017.

The  low  level  of  income  of  farmers  is  attributable  to  low  or  marginal  agricultural  land holdings, traditional methods of farming, non-use of quality seeds, poor soil health, low irrigation facilities, inadequate access to institutional credit etc, which result in lower productivity & output;

to poor farm gate prices realization owing to inadequate access to marketing facilities & postharvest support services; and inadequate income supplementation from allied sectors. In view of this, Government set up a Committee in 2016-17 to frame policies and strategies for doubling farmers' income by 2022 through various initiatives of Government.

(c): The  Price  Stabilization  Fund  (PSF)  was  set  up  in  2014-15  under  the  Department  of Agriculture,  Cooperation  &  Famers  Welfare  (DAC&FW)  to  reduce  the  volatility  in  prices  of important  agricultural/horticultural  commodities  like  onion,  potatoes  and  pulses.  The  scheme was  transferred  to  the  Department  of  Consumer  Affairs  w.e.f.  1st  April,  2016. Department  of Consumer Affairs is monitoring prices of selected essential commodities and calibrating policies for price stabilization.

(d): While  the  MSPs  fixed  by  the  Government  provides  adequate  returns  over  weighted average cost of production (A2+FL), in certain States the returns may be lower on account of low  yield  of  crops  and  higher  cost  relative  to  the  average.    Government  has  taken  several initiatives to reduce the cost of production, raise the yield levels and provide remunerative price to  farmers  which  include  Soil  Health  Card,  Pradhan  Mantri  Krishi  Sinchai  Yojana  (PMKSY), neem-coated urea (NCU), bio pesticides for promoting Integrated Pest Management, Production and supply of quality seeds, promoting water saving devices like sprinkler sets, drip irrigation systems etc.

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