Lok Sabha Question No. 45 (STARRED), answered on 2019-06-25
Subject: Remunerative Price to Farmers
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: Rahul Ramesh Shewale, Bhartruhari Mahtab

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

## LOK  SABHA STARRED QUESTION NO. 45

TO BE ANSWERED ON THE   25 TH  JUNE, 2019

## REMUNERATIVE PRICE TO FARMERS

- *45.     SHRI RAHUL RAMESH SHEWALE: SHRI BHARTRUHARI MAHTAB:

Will the Minister of AGRICULTURE AND FARMERS WELFARE कृ ष एवं कसान कयाण मंी be pleased to state:

- (a) whether the farmers have received remunerative prices for their produce under the agricultural price policy keeping in view the high inflation during each of the last three years and the current year;
- (b) if so, the details thereof, State-wise and if not, the reasons therefor;
- (c) whether the Price Support Scheme (PSS) for procurement of oilseeds, pulses and cotton has been implemented across the country;
- (d) if  so,  the  details  of  procurement of farmers' produce under the said scheme when the  prices  of  the  produce  fell  below  the  Minimum  Support  Price  (MSP)  during  the  said period; and
- (e) the  other  corrective  steps  taken/  being  taken  by  the  Government  to  provide adequate price to farmers for their produce?

## ANSWER

## MINISTER OF AGRICULTURE AND FARMERS WELFARE

## कृ ष एवं कसान कयाण मंी

(SHRI NARENDRA  SINGH TOMAR)

- (a) to (e): A statement is laid on the Table of the House.

## STATEMENT  REFERRED  TO  IN  REPLY  TO  PARTS  (a)  TO  (e)  OF  LOK  SABHA STARRED QUESTION NO.  45  DUE FOR REPLY ON 25 TH  JUNE, 2019.

(a) & (b): Government announces Minimum Support Prices (MSPs) for 22 mandated crops and fair and remunerative price (FRP) for sugarcane on the basis of recommendations  of  the  Commission  for  Agricultural  Costs  &  Prices  (CACP),  after considering  the  views  of  State  Governments  and  Central  Ministries/Departments concerned and other relevant factors.

Region specific parameters are kept in view by the CACP while recommending MSP for agricultural crops. Since cost of production varies in different states on account of  differences  in  levels  of  irrigation,  resource  endowment,  farm  mechanization,  land holding  size  etc.,  CACP  uses  all-India  weighted  average  cost  of  production  while making its recommendations and recommends uniform MSP which is applicable to all states and not region or state-specific. This cost of production is all comprehensive cost as projected by the CACP after factoring  inflation. The MSP so fixed provides atleast 50  %  return  over  all  India  weighted  average  cost  of  production.  The  objective  is  to promote regionally differentiated production strategy and encourage an efficient state of agricultural production in the country.

Government's price policy is to ensure remunerative prices to farmers by offering to procure their produce at MSP through the Price Support Scheme (PSS) and ensure MSP through Price Deficiency Payment scheme (PDPS). Procurement of pulses and oilseeds has been stepped up in recent years to assure remunerative prices to farmers.

(c) & (d): Government is implementing PSS  under the umbrella scheme  of 'Pradhan  Mantri  Annadata  Aay  SanraksHan  Abhiyan'  (PM-AASHA).  This  scheme  is implemented      at the request    of the    concerned  State Government which agrees to

-2- exempt the procured commodities of pulses, oilseeds and copra 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. Procurement  of these commodities are undertaken  directly from  pre-registered farmers  within the stipulated  period  and conforming to the prescribed Fair Average Quality (FAQ) norms. These are carried out by Central Nodal Agencies through the State level agencies at MSP announced by the Government as and when prices fall below the MSP.

The state-wise detail of procurement of pulses and oilseeds at MSP under PSS and for cotton procured by Cotton Corporation of India (CCI) during the last three years and the current year is at Annex 1.

(e): Apart  from  increasing  MSPs,  Government  has  taken  several  steps  to  provide remunerative prices to farmers for their produce which include undertaking procurement through designated procurement agencies, implementing e-National Agriculture Market (e-NAM), enacting the Model Agricultural Produce and Livestock Marketing (Promotion & Facilitation) Act, 2017 and promoting Farmer Producer Organizations (FPOs).

The Government is working on market architecture so as to ensure that farmers get remunerative  prices  on their  produce.  These  include  setting  up  of  Gramin Agricultural Markets (GrAMs) with a view to promote 22,000 number of retail markets in close  proximity  of  farm  gate;  competitive  and  transparent  wholesale  trade  at  APMC through e-NAM; and a robust and pro-farmer export policy.

Interim  Union  Budget  2019  had  announced  a  historic  programme  namely 'Pradhan  Mantri  KIsan  SAmman Nidhi   (PM-KISAN)'. Under        this       programme,

landholding  farmer  families  will  be  provided  direct  income  support  at  the  rate  of Rs. 6,000 per year. The PM-KISAN scheme aims to supplement the financial needs of the  farmers  in  procuring  various  inputs  to  ensure  proper  crop  health  and  appropriate yields,  commensurate  with  the  anticipated  farm  income  at  the  end  of  the  each  crop cycle.

Annexure referred to in reply to part (c) and (d) of Lok Sabha Starred Question No. 45 due for reply on 25.06.2019.

## Tentative detail of Pulses & Oilseeds Procured at MSP Under PSS From 2015-16 to 2018-19 (As on 13.06.2019)

| Year              | 2015-16                       | 2015-16              | 2016-17                       | 2016-17              | 2017-18                       | 2017-18              | 2018-19                       | 2018-19              |
|-------------------|-------------------------------|----------------------|-------------------------------|----------------------|-------------------------------|----------------------|-------------------------------|----------------------|
| States/ Commodity | Quantity Procured (In tonnes) | MSP Value (Rs. Lakh) | Quantity Procured (In tonnes) | MSP Value (Rs. Lakh) | Quantity Procured (In tonnes) | MSP Value (Rs. Lakh) | Quantity Procured (In tonnes) | MSP Value (Rs. Lakh) |
| Oil Seed          | 4949.3                        | 1880.7               | 265066.0                      | 111151.3             | 2000271.2                     | 840590.4             | 1749382.2                     | 783062.4             |
| Copra             |                               |                      | 6325.8                        | 3817.1               |                               |                      |                               |                      |
| Andhra Pradesh    |                               |                      | 3318.5                        | 1974.5               |                               |                      |                               |                      |
| Karnataka         |                               |                      | 1836.4                        | 1145.9               |                               |                      |                               |                      |
| Tamilnadu         |                               |                      | 1170.9                        | 696.7                |                               |                      |                               |                      |
| Groundnut         |                               |                      | 211678.9                      | 89328.5              | 1051582.7                     | 467954.3             | 717514.9                      | 350864.8             |
| Andhra Pradesh    |                               |                      |                               |                      | 61300.1                       | 27278.6              |                               |                      |
| Gujarat           |                               |                      | 210731.2                      | 88928.5              | 829697.0                      | 369215.2             | 447638.2                      | 218895.1             |
| Karnataka         |                               |                      |                               |                      | 11860.3                       | 5277.8               |                               |                      |
| Madhya Pradesh    |                               |                      |                               |                      |                               |                      | 28501.2                       | 13937.1              |
| Odisha            |                               |                      | 947.8                         | 400.0                | 2418.8                        | 1076.4               | 130.8                         | 63.9                 |
| Rajasthan         |                               |                      |                               |                      | 146279.5                      | 65094.4              | 232482.1                      | 113683.8             |
| Telangana         |                               |                      |                               |                      | 27.0                          | 12.0                 |                               |                      |
| Uttar Pradesh     |                               |                      |                               |                      |                               |                      | 8762.6                        | 4284.9               |
| Mustard Seed      |                               |                      | 36940.2                       | 13667.9              | 873661.0                      | 349464.4             | 1009243.4                     | 423882.2             |
| Gujarat           |                               |                      |                               |                      | 52659.6                       | 21063.8              | 29302.2                       | 12306.9              |
| Haryana           |                               |                      | 36940.2                       | 13667.9              | 227602.0                      | 91040.8              | 250985.0                      | 105413.7             |
| Madhya Pradesh    |                               |                      |                               |                      | 119747.3                      | 47898.9              | 182483.3                      | 76643.0              |
| Rajasthan         |                               |                      |                               |                      | 471614.2                      | 188645.7             | 546070.5                      | 229349.6             |
| Uttar Pradesh     |                               |                      |                               |                      | 1211.4                        | 484.6                | 402.4                         | 169.0                |
| West Bengal       |                               |                      |                               |                      | 826.6                         | 330.6                |                               |                      |
| Nigerseed         |                               |                      |                               |                      |                               |                      | 15.9                          | 9.3                  |
| Madhya Pradesh    |                               |                      |                               |                      |                               |                      | 15.9                          | 9.3                  |
| Sesamum Seed      |                               |                      | 3419.8                        | 1709.9               |                               |                      |                               |                      |
| West Bengal       |                               |                      | 3419.8                        | 1709.9               |                               |                      |                               |                      |
| Soyabean          |                               |                      | 162.2                         | 45.0                 | 72282.1                       | 22046.0              | 19483.0                       | 6622.3               |
| Karnataka         |                               |                      |                               |                      |                               |                      | 6.0                           | 2.0                  |
| Maharashtra       |                               |                      | 162.2                         | 45.0                 | 26104.5                       | 7961.9               | 1283.0                        | 436.1                |
| Rajasthan         |                               |                      |                               |                      | 11624.6                       | 3545.5               | 2957.8                        | 1005.4               |
| Telangana         |                               |                      |                               |                      | 34553.1                       | 10538.7              | 15236.2                       | 5178.8               |
| Sunflower Seed    | 4949.3                        | 1880.7               | 6539.1                        | 2582.9               | 2745.4                        | 1125.6               | 3125.0                        | 1683.8               |
| Haryana           | 4784.8                        | 1818.2               | 6250.0                        | 2468.7               | 2400.0                        | 984.0                | 2375.0                        | 1279.7               |
| Odisha            | 164.6                         | 62.5                 | 177.0                         | 69.9                 | 130.4                         | 53.5                 |                               |                      |
| Telangana         |                               |                      | 112.1                         | 44.3                 | 215.0                         | 88.2                 | 750.0                         | 404.1                |

Source: DAC&FW

## Annexure referred to in reply to part (c) and (d) of Lok Sabha Starred Question No. 45 due for reply on 25.06.2019.

## Tentative detail of Pulses & Oilseeds Procured at MSP Under PSS From 2015-16 to 2018-19 (As on 13.06.2019)

| Year              | 2015-16                       | 2015-16              | 2016-17                       | 2016-17              | 2017-18                       | 2017-18              | 2018-19                       | 2018-19              |
|-------------------|-------------------------------|----------------------|-------------------------------|----------------------|-------------------------------|----------------------|-------------------------------|----------------------|
| States/ Commodity | Quantity Procured (In tonnes) | MSP Value (Rs. Lakh) | Quantity Procured (In tonnes) | MSP Value (Rs. Lakh) | Quantity Procured (In tonnes) | MSP Value (Rs. Lakh) | Quantity Procured (In tonnes) | MSP Value (Rs. Lakh) |
| Pulses            |                               |                      | 333644.0                      | 170544.8             | 4552908.9                     | 2162833.7            | 1916260.6                     | 1039284.9            |
| Gram              |                               |                      |                               |                      | 2769430.2                     | 1218549.3            | 755437.4                      | 349012.1             |
| Andhra Pradesh    |                               |                      |                               |                      | 91982.7                       | 40472.4              | 3470.9                        | 1603.5               |
| Gujarat           |                               |                      |                               |                      | 91000.0                       | 40040.0              | 17068.4                       | 7885.6               |
| Haryana           |                               |                      |                               |                      |                               |                      | 207.6                         | 95.9                 |
| Karnataka         |                               |                      |                               |                      | 135422.1                      | 59585.7              | 15.1                          | 7.0                  |
| Madhya Pradesh    |                               |                      |                               |                      | 1611972.1                     | 709267.7             | 576745.6                      | 266456.5             |
| Maharashtra       |                               |                      |                               |                      | 194726.9                      | 85679.8              | 22392.3                       | 10345.3              |
| Rajasthan         |                               |                      |                               |                      | 579972.4                      | 255187.8             | 100961.1                      | 46644.0              |
| Telangana         |                               |                      |                               |                      | 50000.0                       | 22000.0              | 34500.0                       | 15939.0              |
| Uttar Pradesh     |                               |                      |                               |                      | 14354.1                       | 6315.8               | 76.5                          | 35.3                 |
| Masoor            |                               |                      |                               |                      | 246943.9                      | 104951.1             | 56148.3                       | 25126.4              |
| Madhya Pradesh    |                               |                      |                               |                      | 233245.6                      | 99129.4              | 56075.0                       | 25093.6              |
| Uttar Pradesh     |                               |                      |                               |                      | 13698.2                       | 5821.8               | 73.3                          | 32.8                 |
| Moong             |                               |                      | 121902.7                      | 63694.2              | 299182.4                      | 166794.2             | 322531.3                      | 224965.6             |
| Andhra Pradesh    |                               |                      |                               |                      | 3962.7                        | 2209.2               | 12671.3                       | 8838.2               |
| Gujarat           |                               |                      |                               |                      |                               |                      | 4044.8                        | 2821.2               |
| Haryana           |                               |                      |                               |                      |                               |                      | 224.9                         | 156.9                |
| Karnataka         |                               |                      | 2518.9                        | 1316.1               | 21758.4                       | 12130.3              | 28950.0                       | 20192.6              |
| Madhya Pradesh    |                               |                      | 111000.0                      | 57997.5              |                               |                      | 3037.5                        | 2118.6               |
| Maharashtra       |                               |                      | 6977.8                        | 3645.9               | 5262.4                        | 2933.8               | 18230.5                       | 12715.8              |
| Odisha            |                               |                      | 1406.0                        | 734.6                | 2675.1                        | 1491.4               | 550.5                         | 384.0                |
| Rajasthan         |                               |                      |                               |                      | 262203.8                      | 146178.6             | 236277.3                      | 164803.4             |
| Tamilnadu         |                               |                      |                               |                      |                               |                      | 5169.4                        | 3605.6               |
| Telangana         |                               |                      |                               |                      | 3320.0                        | 1850.9               | 13375.3                       | 9329.3               |
| Tur               |                               |                      | 195993.7                      | 98976.8              | 873758.6                      | 476198.4             | 290735.1                      | 164992.2             |
| Andhra Pradesh    |                               |                      |                               |                      | 55600.0                       | 30302.0              | 4680.3                        | 2656.1               |
| Gujarat           |                               |                      | 49797.1                       | 25147.5              | 69986.7                       | 38142.8              | 32275.9                       | 18316.6              |
| Karnataka         |                               |                      | 30920.6                       | 15614.9              | 336154.2                      | 183204.0             | 125938.1                      | 71469.9              |
| Madhya Pradesh    |                               |                      |                               |                      |                               |                      | 3155.0                        | 1790.4               |
| Maharashtra       |                               |                      | 115276.0                      | 58214.4              | 336717.8                      | 183511.2             | 53985.9                       | 30637.0              |
| Tamilnadu         |                               |                      |                               |                      |                               |                      | 399.9                         | 226.9                |
| Telangana         |                               |                      |                               |                      | 75300.0                       | 41038.5              | 70300.0                       | 39895.3              |

## Annexure referred to in reply to part (c) and (d) of Lok Sabha Starred Question No. 45 due for reply on 25.06.2019. Tentative detail of Pulses & Oilseeds Procured at MSP Under PSS From 2015-16 to 2018-19 (As on

## 13.06.2019)

| Year              | 2015-16                       | 2015-16              | 2016-17                       | 2016-17              | 2017-18                       | 2017-18              | 2018-19                       | 2018-19              |
|-------------------|-------------------------------|----------------------|-------------------------------|----------------------|-------------------------------|----------------------|-------------------------------|----------------------|
| States/ Commodity | Quantity Procured (In tonnes) | MSP Value (Rs. Lakh) | Quantity Procured (In tonnes) | MSP Value (Rs. Lakh) | Quantity Procured (In tonnes) | MSP Value (Rs. Lakh) | Quantity Procured (In tonnes) | MSP Value (Rs. Lakh) |
| Urad              |                               |                      | 15747.7                       | 7873.8               | 363593.9                      | 196340.7             | 491408.5                      | 275188.8             |
| Andhra Pradesh    |                               |                      |                               |                      | 92763.0                       | 50092.0              | 13290.1                       | 7442.4               |
| Gujarat           |                               |                      |                               |                      | 19878.4                       | 10734.3              | 9409.8                        | 5269.5               |
| Karnataka         |                               |                      |                               |                      | 13090.5                       | 7068.9               | 10.1                          | 5.7                  |
| Madhya Pradesh    |                               |                      | 15747.7                       | 7873.8               |                               |                      | 345000.0                      | 193200.0             |
| Maharashtra       |                               |                      |                               |                      | 58664.0                       | 31678.5              | 11374.1                       | 6369.5               |
| Odisha            |                               |                      |                               |                      | 4216.8                        | 2277.1               | 302.6                         | 169.5                |
| Rajasthan         |                               |                      |                               |                      | 130905.0                      | 70688.7              | 77444.9                       | 43369.2              |
| Tamilnadu         |                               |                      |                               |                      | 1547.9                        | 835.8                | 3379.1                        | 1892.3               |
| Telangana         |                               |                      |                               |                      | 13170.4                       | 7112.0               | 1454.9                        | 814.8                |
| Uttar Pradesh     |                               |                      |                               |                      | 22568.0                       | 12186.7              | 29743.0                       | 16656.1              |
| West Bengal       |                               |                      |                               |                      | 6790.0                        | 3666.6               |                               |                      |

Source: DAC&FW

## Procurement of cotton by CCI (quantity in lakh bales)

| State                | 2015-16   | 2016-17   |   2017-18 | 2018-19*   |
|----------------------|-----------|-----------|-----------|------------|
| Gujarat              | 0.515     | -         |     0.951 | 0.08       |
| Maharashtra          | 1.168     | -         |     0.146 | 1.96       |
| Madhya Pradesh       | 0.291     | -         |     0.078 | 0.51       |
| Telangana            | 5.952     | -         |     2.635 | 7.77       |
| Andhra Pradesh       | 0.4       | -         |     0.065 | 0.05       |
| Karnataka            | -         | -         |     0.003 | 0.08       |
| Odisha               | 0.116     | -         |     0.02  | 0.25       |
| West Bengal & others | 0.004     | 0.005     |     0.004 | -          |
| Total                | 8.445     | 0.005     |     3.902 | 10.70      |

*as on 19.6.2019

Source: Ministry of Textiles

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