Lok Sabha Question No. 61 (STARRED), answered on 2017-02-07
Subject: Distress Sale of Tomatoes
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: SANJAY SHAMRAO DHOTRE, SATYA PAL SINGH

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

## LOK  SABHA STARRED QUESTION NO. 61

TO BE ANSWERED ON THE 7 TH  FEBRUARY, 2017

## DISTRESS SALE OF TOMATOES

- *61.    SHRI SANJAY DHOTRE: DR. SATYAPAL SINGH:

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

- (a) whether the Government has taken note of distress sale of tomatoes in some parts of the country and if so, the reaction of the Government thereto;
- (b) whether there is a huge gap between annual production and demand of tomatoes and if so, the details thereof, State/UT-wise during the last two years and the current year and the reasons therefor;
- (c) whether the  export  of  tomatoes  has  consistently  been  increased  despite  the  gap between production and demand during the said period and if so, the details thereof; and
- (d) the  steps  taken/being  taken  by  the  Government  to  bridge  the  gap  between production and demand of tomatoes to ensure remunerative price to farmers and stabilize its price in the market?

## 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. 61   DUE FOR REPLY ON 7 TH  FEBRUARY, 2017.

- (a):          Government  is  aware  that  there  has  been  increased  production  of  tomato  in  the current year because of which the prices at few centres are low. However, to safeguard the interests of the farmers and preventing them from distress sale situation, the Department of Agriculture  Cooperation  &  Farmers'  Welfare  (DAC&FW)  operates  Market  Intervention Scheme (MIS) for procurement of horticultural  commodities  including  tomatoes  which are perishable in nature and are not covered under Price Support Scheme. MIS aims to protect the growers of these commodities from making distress sale in the event of a bumper crop during the peak arrival period when the prices tend to fall below economic levels and cost of production.  MIS is implemented at the request of a state / UT government which is ready to bear 50 percent of the loss (25 percent in case of North-Eastern States), if any, incurred on its implementation.

However, no proposal has been received from any State Governments  for procurement of tomato under MIS during 2016-17.

- (b):          There  is  a  positive  gap  between  the  annual  production  and  demand  of  tomatoes details of  which may be seen in table below. The production being much higher than the demand, the supply situation in the country is comfortable.

Quantity in '000 tonnes

| Tomato        |   2014-15 |   2015-16 |   2016-17* |
|---------------|-----------|-----------|------------|
| Production    |     16385 |     18731 |      18911 |
| Annual Demand |     16296 |     17286 |      17519 |

Note: based on NSSO (National Sample Survey Organisation) per capita consumption data 2011-12.

* Projected figures for the whole year

## (c):     The tomato exports from the country are nominal and there is a decline in the total quantity of export as may be seen from the table below;

| Year              |   Quantity in '000 MT |
|-------------------|-----------------------|
| 2013-14           |                   400 |
| 2014-15           |                   218 |
| 2015-16           |                   161 |
| 2016-17 (Apr-Oct) |                   169 |

Source: Ministry of Commerce & Industry, Department of Commerce

(d):    Government is taking several measures to increase production of fruits & vegetables including  tomato  to  ensure  remunerative  prices  to  farmers  &  stabilize  its  price  in  the market, some of which are as under;

-  To boost  the  production  of  fruits    and  vegetables,  in  the  country,  Government  is implementing  Mission  for  Integrated  Development  of  Horticulture  (MIDH)  which provides support for production of quality planting material, improved quality seed production, rejuvenation of senile orchards, protected cultivation, creation of water resources, creation of infrastructure  to prevent post harvest losses of horticultural crops including tomato, adoption of Integrated Nutrient Management (INM)/Integrated  Pest  Management  (IPM)  and  organic  farming  including  insitu generation  of  organic  inputs.  Assistance  for  increasing  horticulture  production  is also being provided under the Rashtriya Krishi Vikas Yojana  (RKVY) scheme.
-  The Govt. is implementing the scheme called electronic National Agriculture Market (e-NAM). Tomato as a horticultural produce is included under e-NAM. As per the scheme, a common e-market platform is being deployed to link the existing physical mandis across the country through online enabling buyers situated even outside the State to participate trading at local level. It will ensure significant     benefits through

higher returns to farmers, lower transaction costs to buyers and stable prices and availability to consumers.

-  Farmers are mobilised into Farmer Producer Organisations (FPOs) for aggregation and economies of scale. Efforts are being made to link FPOs to market by way of direct marketing farmer consumer markets/Apni Mandi and e-markets.
-  Assistance is provided for development of post harvest management and marketing infrastructure  such  as  cold  storages,  ripening  chamber,  pack  houses,  reefer vehicles, primary and wholesale markets, Kisan Mandies, etc.
-  Market  Intervention  Scheme  (MIS)  for  procurement  of  horticultural  commodities which are perishable in nature and are not covered under Price Support Scheme. The objective of  intervention is to  protect  the  growers of  these commodities from making distress sale in the event of a bumper crop during the peak arrival period when the prices tend to fall below economic levels and cost of production.

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