Lok Sabha Question No. 6178 (UNSTARRED), answered on 2017-04-11
Subject: Marketing of Farm Produce
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: ANANDRAO  ADSUL, SHIVAJI ADHALRAO PATIL, RAHUL RAMESH SHEWALE, SHRIKANT EKNATH SHINDE, VINAYAK BHAURAO RAUT, Shrirang Appa Barne, DHARMENDRA YADAV

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

## LOK  SABHA UNSTARRED QUESTION NO.6178

TO BE ANSWERED ON THE  11 TH  APRIL, 2017

## MARKETING OF FARM PRODUCE

6178.  SHRI ANANDRAO ADSUL:

SHRI ADHALRAO PATIL SHIVAJIRAO:

SHRI RAHUL SHEWALE:

DR. SHRIKANT EKNATH SHINDE:

SHRI VINAYAK BHAURAO RAUT:

SHRI SHRIRANG APPA BARNE:

SHRI DHARMENDRA YADAV:

Will  the  Minister  of  AGRICULTURE  AND  FARMERS  WELFARE      ‡ãðŠãäÓã एवं  कसान कयाण ½ãâ¨ããè

be pleased to state:

- (a) whether the priority of the Government is to develop and uplift farmers to achieve the target of doubling the income of farmers by 2022 and if so, the details of the plan workout and implemented to achieve the aforesaid target;
- (b) whether the marketing in farm produce is carried out through State Government designated Mandis spread across the country;
- (c) if  so,  the  manner in  which Forward Trading  will  help farmers to plan their crop planting and to do away with the role of middlemen;
- (d) whether the Government is leveraging the APMC Mandis and at the same time proposes to amend the marketing laws to facilitate setting up of Mandis by the private sector, if so, the details thereof; and
- (e) whether the Government has made any assessment of the success of wholesale market through e-Platform (e-NAM) and if so, the details thereof and the present status thereof?

## ANSWER

MINISTER OF  STATE IN THE  MINISTRY OF  AGRICULTURE AND  FARMERS  WELFARE

‡ãðŠãäÓã एवं  कसान  कयाण ½ãâ¨ããÊã¾ã  ½ãñâ  Àã·¾ã  ½ãâ¨ããè (  SHRI PARSHOTTAM RUPALA)

- (a): Yes, Madam. In order to achieve the target of doubling of income of farmers by the year 2022, the Department of Agriculture, Cooperation and Farmers Welfare(DAC&FW) has constituted a Committee under the Chairmanship of Additional

Secretary  to examine issues relating to doubling of farmers' income by the year 2022, for the following aspects:

Contd…2/-

-2-

- (i) To study the current income level of farmers/ agricultural labourers
- (ii) To measure the historical growth rate of the current income level
- (iii)  To determine the needed growth rate to double the income of farmers/agricultural labourers by the year 2021-22
- (iv)  To  consider  and  recommend  various  strategies  to  be  adopted  to  accomplish  (iii) above
- (v)  To recommend an institutional mechanism to review and monitor implementation to realise the goal
- (vi)  To examine any other related issue.

The Committee has held five meetings so far to evolve a suitable strategy.

Further,  agriculture  is  a  State  subject  and  the  State  Governments  have  primary responsibility for the promotion and development of agriculture. However, the approach of  the  Government  of  India  for  improving  farmers'  welfare  rests  on  making  farming viable by way of reducing cost of cultivation, increasing production and productivity and providing remunerative prices to the farmers for their produce. Farm viability is possible, when cost of cultivation is reduced, yields per unit of farm are increased and farmers get remunerative prices on their produce. The Department has been implementing various schemes  to  meet  this  objective,  viz.  Soil  Health  Card  (SHC)  scheme,  Neem  Coated Urea,  Paramparagat  Krishi  Vikas  Yojana  (PKVY),  The  Pradhan  Mantri  Krishi  Sinchai Yojana (PMKSY), National Agriculture Market scheme (e-NAM), Pradhan Mantri Fasal Bima Yojana (PMFBY).

In addition, the Government provides interest subvention of 3% on short-term crop loans up to Rs.3.00 lakh.  Presently, loan is available to farmers at an interest rate of 7%  per  annum,  which  gets  reduced  to  4%  on  prompt  repayment.  Further,  under Interest  Subvention  Scheme  2015-16,  in  order  to  provide  relief  to  the  farmers  on occurrence  of  natural  calamities,  the  interest  subvention  of  2%  shall  continue  to  be available to banks for the first year on the restructured amount.

The Government is also implementing several Centrally Sponsored Schemes viz. National  Food  Security  Mission  (NFSM);  Mission  for  Integrated  Development  of Horticulture  (MIDH);  National  Mission  on  Oilseeds  &  Oilpalm  (NMOOP);  National Mission for Sustainable Agriculture (NMSA); National Mission on Agricultural Extension & Technology (NMAET) and Rashtriya Krishi Vikas Yojana (RKVY).

MSP is notified for both Kharif & Rabi crops based on the recommendations of the  Commission  on  Agriculture  Costs  &  Prices  (CACP).  The  Commission  collects  & analyses data on cost of cultivation and recommends Minimum Support Price (MSP).

Further the Government undertakes procurement of wheat and paddy under its 'MSP  operations'.  In  addition,  Government  implements  Market  Intervention  Scheme (MIS) for procurement of agricultural and horticultural commodities not covered under the  Price  Support  Scheme  on  the  request  of  State/UT  Government.  The  MIS  is implemented in order to protect the growers of these commodities from making distress sale  in  the  event  of  bumper  crop  when  the  prices  tend  to  fall  below  the  economic level/cost of production.

Contd…3/-

-3-

(b): Marketing  of  agri-produce  in  the country  is  generally  done  through  state designated Agricultural Produce Market Committees (APMCs) or mandis. Also private mandis are operated in some states for this purpose. However, some states like Bihar, Kerala,  Manipur,  Andaman  &  Nicobar,  Daman  &  Diu,  Dadra  and  Nagar  Haveli  and Lakshadweep don't have APMC Acts implemented.

(c): Price signals and future contracts on efficient future markets can help farmers to take decisions on cropping pattern and increment intensity. Farmers would also benefit by the  dissemination  of  future  prices  of  exchange  traded  products  by  improving  their bargaining capacity.

(d): Yes, Madam. A new model APMC Act, 2016 is at final state of formulation. This was derived after much deliberations over the earlier model APMC Act 2003 and the need for inclusion of progressive reforms required in the agriculture marketing sector.

(e): The e-NAM scheme has been designated for implementation in three phases. In the  first  two  phases  target  has  been  met  successfully  by  integrating  417  APMC  by 31.03.2017 against the set target of 400 APMCs. The duration of third phase is from April,  2017  to  March,  2018.  Feedback  from  all  stakeholders,  farmers,  traders  and market  functionaries has  been  very positive on the benefits accruing including remunerative  prices  to  farmers.  This  is  also  evident  from  increase  in  registration  of farmers, commission agents and traders on the portal and volume and value of online trade.

******