Lok Sabha Question No. 3390 (UNSTARRED), answered on 2018-08-07
Subject: Agricultural Marketing Facilities
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: K. GOPAL

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

## LOK  SABHA UNSTARRED QUESTION NO.3390

TO BE ANSWERED ON THE 7 TH   AUGUST, 2018

## AGRICULTURAL MARKETING FACILITIES

3390.     DR. K. GOPAL:

Will the Minister of AGRICULTURE AND FARMERS WELFARE कृ षि एवं ककसान कल्याण मंत्री be pleased to state:

- (a) whether it is true that often the farmers of remote areas do not have sufficient access to Agricultural  Produce  Market  Committee  and  their  potential  market  is  local haats where  their produce is sold below the minimum support price;
- (b) if so, the details thereof;
- (c) whether it is also true that strong procurement operations need to be expanded to the neglected regions of the country including rural areas; and
- (d) if  so,  the  details  thereof  and  the  necessary  steps  taken  by  the  Government  in  this regard?

## ANSWER

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

कृ षि एवं ककसान कल्याण मंत्रालय में राज्य मंत्री (SHRI  GAJENDRA SINGH SHEKHAWAT)

(a) to (d): Agricultural  Marketing  is  a  State  subject  and  price  of  produce  depends  on demand and supply. There are 6630 number of Agricultural Produce Market Committee (APMC) markets in the country under respective State APMC Act, wherein farmers sell their produce.  In order  to  improve  accessibility  of  farmers  to  markets  including  APMC  markets  and  to  provide them with a competitive barrier free markets, Government of India has formulated a Model 'The--State/UT Agricultural Produce and Livestock Marketing (Promotion & Facilitation) Act, 2017', and circulated to States/Union Territories for their adoption.  The model Act provides for direct marketing, private markets, e-trading etc to promote alternate marketing channels to farmers. Government  of  India  has  also  formulated  Model  'The-----State/UT  Agricultural  Produce  & Livestock Contract Farming and Services (Promotion & Facilitation) Act, 2018', and circulated it to States/Union Territories for their adoption. So far, 21 States have made provisions of contract farming  following  earlier  release  of  Model  Agricultural  Produce  Market  Committee  Act,  2003 (APMC Act, 2003) to States/Union Territories (UTs) for adoption. To improve the demand for farmer's  produce,  the  Government  has  introduced  National  Agriculture  Market  (e-NAM),  an online trading platform promoting transparent and competitive bidding even by distant buyers, for better price discovery for farmers for their produce. Already 585 mandis in 16 States and 02 UTs have been integrated with e-NAM platform.

Further, in order to improve market accessibility and to facilitate the farmers to directly sell  their  produce  to  the  consumer  to  get  better  price  realization  for  their  produce,  the Government has announced in Union Budget 2018-19, to develop and upgrade existing 22000 rural  haats  into Gramin Agricultural Markets (GrAMs).  In these GrAMs, physical infrastructure will  be  strengthened  using  Government  Schemes  such  as  MGNREGA  (Mahatama  Gandhi National  Rural  Employment  Guarantee  Act).    These  GrAMs  are  to  be  exempted  from regulations  of  Agriculture  Produce  Marketing  Committee  (APMCs)  and  linked  to  e-NAM  to provide farmers with better market accessibility and  facilities to sell their produce  at remunerative prices.

The Central Government also extends price support to paddy and wheat through the FCI and State Agencies across the country. As per procurement policy of the Government, whatever food grains are offered by farmers within the stipulated period & conforming to the specifications,  are  purchased  at  Minimum  Support  Price  (MSP)  by  the  State  Government agencies including Food Corporation of India (FCI) for Central Pool.

Further the different commodities of coarse grains are procured by State Governments itself,  in  consultation with  Central  Government, as per their requirement for distribution under National Food Security Act (NFSA).

In addition to above, Price Support Scheme (PSS) is implemented for procurement of oil seeds,  pulses  and  cotton  through  Central  Nodal  Agencies  at  the  MSP  declared  by  the Government.

Further, Market Intervention Scheme  (MIS) is implemented for procurement of agricultural and horticultural commodities which are perishable in nature and are not covered under PSS to protect the growers of these commodities from making distress sale.

The objective of procurement and market intervention by Government is to ensure that farmers and producers get remunerative prices for their produce and do not have to resort to distress sale. However, if producer/farmer gets better price elsewhere they are free to sell their produce in open market.

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