Lok Sabha Question No. 257 (STARRED), answered on 2018-03-13
Subject: Production Subsidy to Farmers
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: SUKHBIR SINGH JAUNPURIA

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

## LOK  SABHA STARRED QUESTION NO. 257

TO BE ANSWERED ON THE 13 TH  MARCH, 2018

## PRODUCTION SUBSIDY TO FARMERS

## *257.     SHRI SUKHBIR SINGH JAUNAPURIA:

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

- (a) whether the committee headed by the Chief Economic Advisor has given suggestions  to  provide  production  subsidy  to  the  farmers  and  additional  allocation  to procuring agencies of the Government and if so, the details thereof;
- (b) whether the  Government is considering to implement the recommendations of the committee, if so, the details thereof and if not, the reasons therefor;
- (c) whether the  Government  proposes  to  impose restrictions on  export  of  pulses  and enhance their stocks and if so, the details thereof; and
- (d) the steps being taken by the Government to increase the yield of pulses and curb their prices?

## 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. 257    DUE FOR REPLY ON 13 TH  MARCH, 2018.

(a)  & (b): To  address  the  policy  issues  that  would  help  mitigate  the  volatility  in acrage, production and prices in pulses, the Chief Economic Adviser (CEA) was asked to  suggest  measures  in  consultations  with  all  stakeholders.  Based  on  broad  based consultations,  the  Report  of  the  Committee  chaired  by  CEA  inter  alia  recommended higher Minimum Support Price (MSP) to increase the production of pulses: of gram at Rs. 4000 per quintal for rabi 2016-17; of tur and urad for kharif 2017-18 at Rs.6000 per quintal; and similar increases for other pulses in the same proportion as estimated for tur,  urad  and  gram.  The  Report  further  recommended  that  to  promote  production  of pulses, efforts to be made to give production subsidies through Direct Benefit Transfer to farmers for growing pulses in irrigated areas of about Rs.1000-1500 per quintal. In addition,  the  Report  also  suggested  that  government  must  allocate  an  additional  Rs. 10,000 crore to the various procurement agencies as effective procurement is essential to ensure that market prices do not fall precipitously.

Government had fixed the MSP of Gram at Rs. 4000 (including bonus of Rs.200) per quintal for rabi, 2016-17. For kharif 2017-18, the MSPs of Tur and Urad had been fixed at Rs. 5450 (including bonus of Rs.200) per quintal and Rs. 5400 (including bonus of Rs.200) per quintal respectively. The MSPs fixed by Government for Tur and Urad for 2017-18  provide  returns  of  64.3  per  cent  and  65.4  per  cent  over  all-India  weighted average cost of production (A2+FL). The MSP of Masur for rabi 2016-17 had been fixed at  Rs.  3950  (including  bonus  of  Rs.150)  per  quintal.  The  MSP  for  kharif  2017-18  for moong had been fixed at Rs. 5575 (including bonus of Rs.200) per quintal.

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Under  the  Price  Stabilization  Fund  (PSF),  procurement  of  pulses  for  central buffer is undertaken at market prices or  MSPs, whichever is higher besides supplementation  through  imports.  In  addition  to  PSF,  to  protect  the  interest  of  the farmers,  Government  implements  Price  Support  Scheme  (PSS)  for  procurement  of pulses through Central Nodal Agencies at the MSP wherein State agencies play a major role. This scheme is implemented at the request of the concerned State Governments, which  agree  to  exempt  the  procured  commodities  from  levy  of  mandi  tax,  assist procurement agencies in logistic arrangements including gunny bags, provide working capital  for  State  agencies  and  creation  of  revolving  fund  for  PSS  operations  etc.  as required  under  the  Scheme  guidelines.  The  basic  objectives  of  PSS  are  to  provide remunerative prices to the growers for their produce with a view to encourage higher investment and production and to safeguard the interest of consumers  by  making  available supplies at reasonable price with low cost of intermediation.  To  ensure  remunerative  price  to  farmers,  the  level  of  procurement  of pulses  has  increased  significantly  from  0.50  lakh  tonnes  in  2015-16  to  17.39  lakh tonnes  in  2016-17.    During  2017-18  (till  5.3.2018)  Government  procured  12.03  lakh tonnes.    As  a  result  of  Government's  measures,  the  production  of  pulses  in  2016-17 was  high  at  23.13  million  tonnes  during  2016-17  and  is  estimated  at  23.95  million tonnes in 2017-18 as per the Second Advance Estimates.

(c) & (d):      One of the recommendations of the Committee was to eliminate export ban on  pulses.  As  pulses  production  had  reached  record  levels  and  the  prices  of  pulses stabilized, in November 2017, Government removed prohibition on export of all types of pulses.   Opening of export of   all types of pulses will help the farmer to dispose off their

-3- products at remunerative prices, offer alternative market opening and also encourage them to expand the area of sowing. Allowing export of pulses will also help the country

and its exporters to regain their markets. Government  has  taken  several  initiatives  to  increase  agricultural  yield  which, include  Rashtriya  Krishi  Vikas  Yojana  (RKVY),  National  Mission  for  Sustainable Agriculture  (NMSA),  Pradhan  Mantri  Krishi  Sinchai  Yojana  (PMKSY),  Paramparagat Krishi Vikas Yojana (PKVY), Integrated Nutrient Management (INM), Soil Health Card and Integrated Pest Management (IPM). As a result of bumper production of pulses in 2016-17, the average wholesale prices of pulses moderated in 2017-18. Inflation rate of pulses  has  declined  from  34.8  per  cent  in  2015-16  to  17.6  per  cent  in  2016-17  and further to (-)17.5 per cent in 2017-18 (April-January).

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