Lok Sabha Question No. 605 (UNSTARRED), answered on 2018-02-06
Subject: Farmers Agitation for Remunerative Prices
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: RAJU ALIAS DEVAPPA ANNA SHETTI, PARAYAMPARANBIL KUTTAPPAN BIJU

## GOVERNMENT OF INDIA

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

## LOK  SABHA UNSTARRED QUESTION NO.605

TO BE ANSWERED ON THE 6 TH  FEBRUARY, 2018

## FARMERS AGITATION FOR REMUNERATIVE PRICES

605.   SHRI RAJU SHETTY: DR. P.K. BIJU:

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

- (a) whether  the  Government  is  aware  of  the  agitation  started  by  187  different  farmers organisations in the country on the major demand for total debt free farmers and one and half time more minimum support price for all agricultural produce, if so, the details thereof along with the reaction of the Government thereto;
- (b) whether  this  agitation  started  by  these  farmers  organisations  is  spreading  largely throughout the country, if so, the details thereof;
- (c) whether the Government has assured the farmers to get one and half time more returns for their farm produce as compared with actual production cost; and
- (d) if so, the time by which the Government is implementing the same?

## ANSWER

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

कृ षि एवं ककसान कल्याण मंत्राऱय में राज्य मंत्री (SHRI  GAJENDRA SINGH SEHKHAWAT)

(a) to (d): During the past few months, incidents of unrest among farmers have come to the notice of the Government specially in the States of Maharashtra, Madhya Pradesh & Tamilnadu. The demands of the farmers inter-alia includes that the waiver of farm loans, the enhancement in Minimum Support Price (MSP) in line with the MSP should be one and half times more than the cost of production, etc.

Regarding  the  farmers'  demand  for  fair  and  remunerative  prices,  it  is  stated  that  the recommendations of National Commission on Farmers (NCF) headed by Dr. M. S. Swaminathan, that the Minimum Support Price (MSP) should be at least 50% more than the weighted  average  cost  of  production  has  not  been  included  in  the  National    Farmers  Policy, 2007.  The Government fixes MSP on the basis of recommendations of the Commission for Agricultural  Costs  and  Prices  (CACP).    CACP  recommendations  in  this  regard  is  based  on objective criteria, considering host of relevant factors and prescribing an increase of 50% of the cost,  may  affect  inter-crop  parity  and  distort  market  mechanism.    However,  the  return  over weighted average cost of production (A2+FL) for MSP's fixed by the Government for 2017-18 has  been  in  excess  of  50%    in  many  crops  with  return  of  112.4%  for  wheat,  88.4%  for rapeseed/mustard, 79.6% for masur,  78.8% for gram, 66.9% for barley, 65.4% for urad,  64.3% for tur and 62.0 for jute and 50.2% for  bajra.

To ensure remunerative prices for farmers, Government has taken several steps which include setting up of procurement centres keeping in view the potential in the areas; creating awareness among the farmers of the MSP operations; encouraging decentralized procurement; adopting  e-procurement  system;  engaging  private  players  in  certain  states  to  participate  in procurement operations, implementing e-National Agriculture Market, promoting Farmer Producer  Organization  (FPOs)  etc.  In  addition,  Government  operates  Price  Support  Scheme (PSS)  to  ensure  that  remunerative  prices  are  paid  to  farmers.  In  addition,  Government  has taken various initiatives to increase farm productivity for ensuring higher returns to farmers. The Government  has  also  constituted  an  inter-ministerial  committee  to  recommend  appropriate strategy to double the income of farmers by 2022.

In  the  Union  Budget  2018-19,  the  Government  has  announced  the  pre-determined principle  to  keep  MSP  atleast  at  levels  of  one  and  half  times  the  weighted  average  cost  of production.

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