Lok Sabha Question No. 4547 (UNSTARRED), answered on 2021-03-23
Subject: Remunerative Price for Farmers
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: Haji Fazlur Rehman

## GOVERNMENT OF INDIA

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

## LOK SABHA UNSTARRED QUESTION NO. 4547

TO BE ANSWERED ON THE 23 RD  MARCH, 2021

## REMUNERATIVE PRICE FOR FARMERS

4547.  SHRI  HAJI FAZLUR REHMAN:

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

- (a) whether the farmers in various States of the country especially Uttar Pradesh are  unable  to  sell  their  crops  at  remunerative  price  as  compared  to  the  cost  of production of their crops;
- (b) if so, the steps taken by the Government in this regard;
- (c) whether the Government proposes to release relief package to improve the condition of farmers of Uttar Pradesh;
- (d) if so, the details thereof; and
- (e) if not, the reasons therefor?

## ANSWER

MINISTER OF AGRICULTURE AND FARMERS WELFARE

कृ ष एवं कसान क  याण मंी (SHRI NARENDRA SINGH TOMAR)

(a) to (e): Government announces Minimum Support Prices (MSP) for 22 major agricultural commodities of Fair Average Quality (FAQ) each year in both the Crop seasons on the basis of recommendations of Commission for Agricultural Costs & Prices  (CACP),  after  considering  the  views  of  State  Governments  and  Central Ministries/Departments concerned & other relevant factors. In addition, MSP for toria and de-husked coconut is also fixed on the basis of MSPs of rapeseed & mustard and  copra  respectively.  While  recommending  MSPs,  CACP  considers  important factors  like  cost  of  production,  overall  demand-supply  conditions,  domestic  and international  prices,  inter-crop  price,  terms  of  trade  between  agricultural  and  nonagricultural  sectors,  the  likely  effect  on  the  rest  of  the  economy,  besides  ensuring rational utilization of land, water and other production resources and a minimum of 50 percent as the margin over cost of production in case of MSPs. Government also extends  remunerative  price  to  farmers  through  its  various  interventions  schemes. Besides, the overall market also responds to declaration of MSP and Government's procurement operations which results in private procurement on or above the MSP for various notified crops.

The Government extends price support for all the MSP notified crops across the country including Uttar Pradesh. The procurement of paddy and wheat are done through the Food Corporation of India (FCI) and State Agencies. Further,  different types  of  nutri-cereals  and  maize  are  procured  by  State  Governments  itself  in consultation with FCI to the extent that the concerned State Government may utilise the same for distribution under Targeted Public Distribution System (TPDS) as well as Other Welfare Schemes (OWS).

Under  Price  Support  Scheme(PSS),  Oilseeds,  pulses  and  copra  of  Fair Average Quality (FAQ) are procured from registered farmers, as per its prescribed guidelines  at  MSP  in  consultation  with  the  concerned  State  Government  as  and when market price of these produce fall below the MSP. Under PM-AASHA, States / UTs are offered to choose either Price Support Scheme (PSS) or Price Deficiency Payment Scheme (PDPS) in a given procurement season with respect to particular oilseeds crop for the entire State. Further, States have the option to roll out Private Procurement  and  Stockist  Scheme  (PPSS)  on  pilot  basis  in  district  /  selected APMC(s) of district involving the participation of private stockist for oilseeds.

Cotton  and  Jute  are  also  procured  by  Government  at  MSP  through  Cotton Corporation of India (CCI) and  Jute Corporation of India (JCI) respectively. Moreover, if farmer gets better price in comparison to MSP, they are free to sell their produce in open market.

Further, to protect the growers of those horticultural / agricultural commodities for which Minimum Support Price (MSP) is not declared and which are perishable in nature, Government implements Market Intervention Scheme (MIS). The objective of intervention is to protect the growers from making distress sale. In accordance with MIS  guidelines,  this  scheme  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 North-Eastern States), if any, incurred on its implementation.

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