Lok Sabha Question No. 278 (STARRED), answered on 2017-03-21
Subject: Remunerative Prices for Agricultural Produce
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: M. B. RAJESH, P.K.SREEMATHI TEACHER

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

## LOK  SABHA STARRED QUESTION NO. 278

TO BE ANSWERED ON THE 21 ST  MARCH, 2017

## REMUNERATIVE PRICES FOR AGRICULTURAL PRODUCE

- *278.    SHRI M.B. RAJESH: SHRIMATI P.K. SREEMATHI TEACHER:

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

- (a) whether it has come to the notice of the Government that the farmers were forced to sell their agricultural commodities at very low price;
- (b) if  so,  the  details  thereof  along  with  the  steps taken  by the  Government to control crashing prices of certain agricultural commodities and save the farmers from the distress sale of their produce;
- (c) whether  the  Government  has  increased  the  Minimum  Support  Price  (MSP)  for agricultural commodities to ensure remunerative prices to the farmers during the current year; and
- (d) if  so,  the  details  thereof,  commodity-wise  along  with  the  details  of  agricultural commodities which are covered under the Minimum Support Price (MSP)?

## 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. 278   DUE FOR REPLY ON 21 ST   MARCH, 2017.

(a) to (d): Government fixes Minimum Support Prices (MSPs) for twenty three (23) major  crops  on  the  recommendations  of  the    Commission  for  Agricultural  Costs  and Prices  (CACP)  after  considering  the  views  of  the  State  Governments  and  concerned Central  Ministries/Departments.    Twenty  two  crops  covered  under  MSP  are  Paddy, Jowar, Bajra, Maize, Ragi, Arhar, Moong, Urad, Groundnut-in-shell, Soyabean, Sunflower, Sesamum,  Nigerseed,  Cotton,  Wheat, Barley,  Gram,  Masur (Lentil), Rapeseed/Mustardseed, Safflower, Jute and Copra, and Fair and Remunerative Price (FRP) for Sugarcane.

In  addition,  MSP  for  Toria  and  De-Husked  coconut  is  fixed  on  the  basis  of MSPs  of Rapeseed/Mustardseed and Copra respectively. The MSPs  fixed by Government for 2015-16 and 2016-17 are given at Annexure.

The Government offers to procure the agricultural produce at MSP.  However, farmers are free to sell their produce to Government procurement agencies at MSP or in the  open  market  as  is  advantageous  to  them.  During  2016-17,  Government  has procured 31.32  million  tonnes  of  rice,  22.93  million  tonnes  of  wheat  and  1.03  million tonnes of pulses (as on 15.03.2017) at MSP.

In  addition,  Government  implements  Market  Intervention  Scheme  (MIS)  for procurement  of  agricultural  and  horticultural  commodities  not  covered  under  the Minimum  Support  Price 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. Losses, if any, incurred by the procuring agencies are shared by the Central Government and the concerned State Government on 50:50 basis (75:25

in  case  of  North-Eastern  States).  During  2016-17,  procurement  under  MIS  has approved  for  Andhra  Pradesh  and  Tamil  Nadu  for  Oil  Palm,  Mizoram  for  Grapes, Karnataka  for  onion  and  arecanut,  Telangana  for  onion  and  Arunachal  Pradesh  for ginger.

Government has also taken several steps to ensure MSP for agricultural produce which,  inter  alia,  includes  setting  up  of  procurement  centers  keeping  in  view  the potential in the areas; creating awareness among the farmers of the MSP operations; making  payment  through  arthias/co-operative  societies  to  the  farmers;  encouraging decentralized procurement; adopting e-procurement system; engaging private players in certain States to participate in procurement operations etc.

In  order  to  facilitate  better  price  realization  and  ensure  remunerative  prices  to farmers the Government has also launched a scheme to develop a pan India electronic trading  platform  under  'National  Agriculture  Market'  (NAM)  aiming  to  integrate  585 regulated markets with the common e-market platform. Each State is being encouraged to undertake three major reforms - allow electronic trading, have a single license valid throughout  the  State  and  a  single  entry  point  market  fee.    277  markets  in  10  States have  already  been  brought  on  the  e-NAM  platform.  Government  is  also  promoting Farmer  Producer  Organizations  (FPOs)  to  facilitate  access  to  fair  &  remunerative markets.

## Annexure

Annexure referred to in reply to parts (a) to (d) of Lok Sabha Starred Question No. 278 due for reply on 21.03.2017.

## Minimum Support Prices

(Rs. per quintal)

| Sl. No.   | Commodity                         | Variety       | 2015-16   | 2016-17   | (#) increase in MSP 2016-17 over 2015-16   |
|-----------|-----------------------------------|---------------|-----------|-----------|--------------------------------------------|
|           | KHARIF CROPS                      |               |           |           |                                            |
| 1         | PADDY                             | Common        | 1410      | 1470      | 60(4.3)                                    |
|           |                                   | Grade 'A'     | 1450      | 1510      | 60(4.1)                                    |
| 2         | JOWAR                             | Hybrid        | 1570      | 1625      | 55(3.5)                                    |
|           |                                   | Maldandi      | 1590      | 1650      | 60(3.8)                                    |
| 3         | BAJRA                             |               | 1275      | 1330      | 55(4.3)                                    |
| 4         | MAIZE                             |               | 1325      | 1365      | 40(3.0)                                    |
| 5         | RAGI                              |               | 1650      | 1725      | 75(4.5)                                    |
| 6         | ARHAR(Tur)                        |               | 4625^     | 5050^^    | 425(9.2)                                   |
| 7         | MOONG                             |               | 4850^     | 5225^^    | 375(7.7)                                   |
| 8         | URAD                              |               | 4625^     | 5000^^    | 375(8.1)                                   |
| 9         | COTTON                            | Medium Staple | 3800      | 3860      | 60(1.6)                                    |
|           |                                   | Long Staple   | 4100      | 4160      | 60(1.5)                                    |
| 10        | GROUNDNUT IN SHELL                |               | 4030      | 4220*     | 190(4.7)                                   |
| 11        | SUNFLOWER SEED                    |               | 3800      | 3950*     | 150(3.9)                                   |
| 12        | SOYABEEN                          |               | 2600      | 2775*     | 175(6.7)                                   |
| 13        | SESAMUM                           |               | 4700      | 5000^     | 300(6.4)                                   |
| 14        | NIGERSEED                         |               | 3650      | 3825*     | 175(4.8)                                   |
|           | RABI CROPS                        |               |           |           |                                            |
| 15        | WHEAT                             |               | 1525      | 1625      | 100(6.6)                                   |
| 16        | BARLEY                            |               | 1225      | 1325      | 100(8.2)                                   |
| 17        | GRAM                              |               | 3500**    | 4000^     | 500(14.3)                                  |
| 18        | MASUR (LENTIL)                    |               | 3400**    | 3950!     | 550(16.2)                                  |
| 19        | RAPESEED/MUSTARD                  |               | 3350      | 3700*     | 350(10.4)                                  |
| 20        | SAFFLOWER                         |               | 3300      | 3700*     | 400(12.1)                                  |
| 21        | TORIA                             |               | 3290      | 3560      | 270(8.2)                                   |
|           | OTHER CROPS                       |               |           |           |                                            |
| 22        | COPRA                             | Milling       | 5550      | 5950      | 400(7.2)                                   |
|           | (Calender Year)                   | Ball          | 5830      | 6240      | 410(7.0)                                   |
| 23        | DE-HUSKED COCONUT (Calender Year) |               | 1500      | 1600      | 100(6.7)                                   |
| 24        | JUTE                              |               | 2700      | 3200      | 500(18.5)                                  |
| 25        | SUGARCANE $                       |               | 230.00    | 230.00    | -                                          |

- # Figures in brackets indicate percentage increase.
- $ Fair and remunerative Price
* Including Bonus of Rs. 100 per quintal.
- ** Including Bonus of Rs. 75 per quintal.
- ^ Including Bonus of Rs. 200 per quintal.
- ^^ Including Bonus of Rs. 425 per quintal.
- ! Including Bonus of Rs. 150 per quintal

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