Lok Sabha Question No. 314 (STARRED), answered on 2017-08-08
Subject: Decline in Tender Coconut Prices
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: RAVINDRA BABU  PANDULA

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

## LOK  SABHA STARRED QUESTION NO. 314

TO BE ANSWERED ON THE 8 TH   AUGUST, 2017

## DECLINE IN TENDER COCONUT PRICES

*314.   DR. RAVINDRA BABU:

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

- (a) whether  the  Government  is  aware  of  the  plight  of  the  coconut  farmers  of  the Konaseema region including the farmers of East and West Godavari districts due to rapid decline in the prices of tender coconut;
- (b) if so, the details thereof; and
- (c) the steps taken by the Government to provide relief to the farmers of the region?

## ANSWER

MINISTER OF AGRICULTURE AND FARMERS WELFARE

कृ ष एवं कसान कयाण ½ãâ¨ããè (SHRI RADHA MOHAN SINGH) (a) to (c): A statement is laid on the Table of the House.

## STATEMENT  REFERRED  TO  IN  REPLY  TO  PARTS  (a)  TO  (c)  OF  LOK  SABHA STARRED QUESTION NO.  314  DUE FOR REPLY ON  8 TH   AUGUST, 2017.

- (a) & (b): The price of tender coconut in West Godavari region during July 2017 was ranging between Rs.7/- to Rs.8/- per nut which is slightly higher than the price of tender coconut which ranged between Rs.6/- to Rs.7/- per nut during July 2016.
- (c): Ministry  of  Agriculture  and  Farmers'  Welfare  through  Coconut  Development Board  (CDB)  is  implementing  various  schemes  in  Andhra  Pradesh  with  a  view  to encourage value addition and byproduct utilization through Farmer Producer Organizations (FPOs). CDB is facilitating the formation of FPOs in coconut sector for the benefit of coconut farmers.

In  order  to  help  the  coconut  farmers  in  getting  remunerative  prices  for  their produce, the Central Government has been implementing Price Support Scheme (PSS) for  procurement of oil  seeds, pulses and cotton through Central nodal agencies. This scheme  is  implemented  at  the  request  of  the  concerned  State  Government  which agrees to exempt the procured commodities from levy of mandi tax and assist central nodal agencies in logistic arrangements, including gunny bags, working capital for state agencies,  creation  of  revolving  fund  for  PSS  operations,  etc.  as  required  under  the scheme  guidelines.  The  procurement  of  oilseeds,  pulses  &  cotton  are  undertaken  by central agencies at Minimum Support Price (MSP) announced by the Government as and when prices fall below the MSP.

In  addition  to  above  Price  Support  Scheme,  the  Central  Government  has  also been  implementing Market Intervention Scheme (MIS)  for procurement  of  horticultural

-2- commodities  which  are  perishable  in  nature  and  are  not  covered  under  the  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. The Market Intervention Scheme (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 NorthEastern States),  if  any,  incurred  on  its  implementation.  The  extent  of  total  amount  of loss  to  be  shared  on  a  50:50  basis  between  the  central  government  and  the  state government is  restricted  to  25  percent  of  the  total  procurement  value  which  includes cost of the commodity procured plus permitted overhead expenses.  Under the Scheme, in  accordance  with  MIS  guidelines,  a  pre-determined  quantity  at  the  fixed  Market Intervention  Price  (MIP)  is  procured  by  National  Agricultural  Cooperative  Marketing Federation (NAFED) as the Central agency and the agencies designated by the state government for a fixed period or till the prices are stabilized above the MIP whichever is earlier.  The area of operation is restricted to the concerned state only.

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