Lok Sabha Question No. 343 (UNSTARRED), answered on 2017-07-18
Subject: Remunerative Prices for Agricultural Produce
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: RAVINDRA VISHWANATH GAIKWAD, R. PARTHIPAN, BANSHILAL MAHTO, J. JAYASINGH THIYAGARAJ NATTERJEE

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

## LOK  SABHA

## UNSTARRED QUESTION NO.343 TO BE ANSWERED ON THE 18 TH  JULY, 2017

## REMUNERATIVE PRICES FOR AGRICULTURAL PRODUCE

343.   PROF. RAVINDRA VISHWANATH GAIKWAD: SHRI R. PARTHIPAN: DR. BANSHILAL MAHATO: SHRI J.J.T. NATTERJEE:

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

- (a) whether  the farmers including paddy  growers  in various States are not getting remunerative prices for their yields;
- (b) if so, the details thereof and the reasons therefor;
- (c) whether the Government is formulating a clear and effective policy for minimum support price and loan waiver in the interest of the farmers in the country;
- (d) if so, the details thereof;
- (e) whether the Government is considering the legitimate demands of the farmers, if so, the details thereof; and
- (f) the  details  of  the  various  steps  taken  by  the  Government  to  ensure  adequate remunerative prices to farmers including paddy growers for their crops?

## ANSWER

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

कृ ष एवं कसान कयाण मंालय म राय मंी (SHRI  S.S. AHLUWALIA)

(a) & (b): Government ensures remunerative price to the growers by offering to procure their produce at MSP. However, farmers are free to sell it to Government agencies or in the open market as is advantageous to them.

The procurement of paddy in terms of rice at MSP by the Government agencies since 2014-15 to 2016-17 is at Annexure.

(c) to (e): Government fixes the Minimum Support Prices (MSPs) of various crops on the recommendations  of  the  Commission  for  Agricultural  Costs  &  Prices  (CACP),  the  views  of concerned  State  Governments  and  Central  Ministries/Departments.  While  formulating  its recommendations on price policy, the CACP considers, inter alia, a number of important factors including  demand  and  supply,  cost  of  production,  trends  in  market  prices,  inter-  crop  price parity, terms of trade between agriculture and non-agriculture etc.

CACP also holds consultations with various stakeholders including farmers' representatives before finalizing its recommendations.

Government has  taken several  measures  to  minimize  indebtedness  from  noninstitutional sources  of lending which  includes  fixation of annual  targets for improving agricultural  credit  flow,  provision  of  crop  loans  up  to  Rs.3.00  lakh  @  4%  per  annum  to  such farmers who repay their loan as per the repayment schedule fixed by the banks, extension of benefit of interest subvention scheme to small & marginal farmers having Kisan Credit Card for a  further  period  upto  six  months  for  storing  their  produce  in  warehouses  against  negotiable warehouse  receipts,  collateral  free  loan  up  to  Rs.  1.00  lakh,  scheme  for  financing  of  joint Liability Group (JLGs) etc.

(f): Government  has  taken  several  steps  to  ensure  MSP  for  all  agricultural  produce including paddy which inter alia includes setting up of procurement centre keeping in view the potential in the areas; creating awareness among the farmers of the MSP operations; making payment  through  arthias/co-operative  societies  to  the  farmers;  encouraging  decentralized procurement;  adopting  e-procurement  system;  engaging  private  players  in  certain  States  to participate in procurement operations etc.

In addition, Government has also launched a scheme developing a pan India electronic trading  platform  under  'National  Agriculture  Market'  (NAM)  aiming  to  integrate  585  regulated markets with the common e-market platform to ensure remunerative prices for major agricultural crops  including  paddy.   Each  State  is  being  encouraged  to  undertake  three  major  reforms  allow electronic trading, have a single license valid throughout the State and a single entry point market fee. 455 markets in 13 States have already been brought on the e-NAM platform.

Annexure

Statement referred to in reply to part (a)&(b) of Lok Sabha Unstarred Question No.343 for answer on 18.07.2017 regarding 'Remunerative prices for agricultural produce'

## PROCUREMENT OF RICE

('000 Tonnes)

| STATE          |   2014-15 |   2015-16 |   2016-17* |
|----------------|-----------|-----------|------------|
| ANDHRA PRADESH |      3596 |      4336 |       3707 |
| TELANGANA      |      3504 |      1580 |       3591 |
| ASSAM          |        15 |        42 |         41 |
| BIHAR          |      1614 |      1225 |       1234 |
| CHANDIGARH     |        10 |        16 |         13 |
| CHHATISGARH    |      3423 |      3442 |       4662 |
| HARYANA        |      2015 |      2861 |       3583 |
| JHARKHAND      |         6 |       206 |        138 |
| KARNATAKA      |        88 |        54 |          0 |
| KERALA         |       374 |       382 |        308 |
| MADHYA PRADESH |       807 |       849 |       1314 |
| MAHARASHTRA    |       199 |       230 |        305 |
| ODISHA         |      3357 |      3369 |       3568 |
| PUNJAB         |      7786 |      9350 |      11052 |
| TAMIL NADU     |      1051 |      1192 |        141 |
| UTTARAKHAND    |       465 |       598 |        706 |
| UTTAR PRADESH  |      1698 |      2910 |       2354 |
| WEST BENGAL    |      2032 |      1568 |       1918 |
| OTHERS         |      3596 |         8 |         13 |
| T O T A L      |     32040 |     34218 |      38648 |

* As on 06.07.2017

Source: Department of Food & Public Distribution.

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