Lok Sabha Question No. 1498 (UNSTARRED), answered on 2019-02-12
Subject: Remunerative Prices for Farm Produce
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: PRITAM GOPINATH MUNDE, Shrirang Appa Barne, SHRIKANT EKNATH SHINDE, ANANDRAO  ADSUL, SHIVAJI ADHALRAO PATIL

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

## LOK  SABHA UNSTARRED QUESTION NO.1498

TO BE ANSWERED ON THE 12 TH   FEBRUARY, 2019

## REMUNERATIVE PRICES FOR FARM PRODUCE

1498.    DR.  PRITAM  GOPINATH MUNDE: SHRI SHRIRANG APPA BARNE: DR.  SHRIKANT  EKNATH SHINDE: SHRI ANANDRAO ADSUL: SHRI ADHALRAO  PATIL SHIVAJIRAO:

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

- (a) whether it is a fact that there is a huge  gap  between  production  and procurement  with the result  that farmers have not been able to get remunerative prices for their produce, if so, the response of the Government thereto;
- (b) whether    the    procuring    agencies  responsible  for  procuring  foodgrains  like  rice  and wheat have been able to procure only 26.77 per cent  of wheat production and 31.30 per cent of rice production during financial years 2002-03 to 2017-18, if so, the  facts  thereof  along  with the  reasons therefor;
- (c) whether it is a fact that India has failed  to  solve  the  riddle  of  agricultural marketing, if so, the facts thereof;
- (d) whether  the  Government  has studied the reasons responsible for such a failure, if so, the details thereof; and
- (e) the    remedial    steps    taken    by    the  Government    to    bridge    the    gap    between production and procurement so far and the success achieved in this regard?

## ANSWER

MINISTER OF STATE IN THE MINISTRY OF AGRICULTURE AND FARMERS WELFARE

कृ ष एवं कसान कयाण मंालय म राय मंी (SHRI  PARSHOTTAM  RUPALA)

- (a) & (b): There  is  always  a  gap  between  production  and  procurement  of  agricultural produce,  since  the  entire  quantity  produced  is  not  brought  to  Mandis  /  Purchase  centres. Farmers retain a part of their produce for their self-consumption and seeds. The surplus is sold by  them  in  the  market.  On  an  average,  approximately      30-35%  of  the  total  rice  and  wheat produced in the country is procured for central pool by Government Agencies. The production and procurement of rice & wheat from 2002-03 to 2018-19 is at Annexure-I.
- (c) & (d): Agricultural  marketing  is  a  State  subject  and  Government  of  India  plays  a supportive role. The organized wholesale marketing of agricultural produce is promoted through Contd…2/-

the  network   of   reregulated,  wholesale  markets  established  under  the  provisions  of   States' Agricultural Produce Marketing (Regulation) Acts, popularly called Agricultural Produce Market Committee  (APMC)  Acts.  Government  has  taken  several  measures  to   develop   accessible marketing facilities for farmers  nearer to the their farm gate  with the objectives  that farmers should get  competitive and efficient markets  with fair and transparent  trading mechanism. The measures,  inter  alia,   include  steps  like   persuasion  of  States  to  reform  their  marketing laws/policies to provide better marketing facilities to the farmers by adopting the new model Act namely, 'The Agricultural Produce and Livestock Marketing (Promotion & Facilitation) Act, 2017' in April 2017. The model act provides for alternative marketing channels such as setting up of private  markets,  direct  marketing,  farmer-consumer  markets,  special  commodity  markets,  to facilitate farmers in marketing their produce at competitive & remunerative prices.  Further, the Government  has  formulated  and  released  a  progressive  and  facilitative  Model  Act  'The  ---State/  UT  Agricultural  Produce  &  Livestock  Contract  Farming  and  Services  (Promotion  & Facilitation)  Act,  2018'  in  May,  2018  for  its  adoption  by  the  states/Union  Territories  (UTs)  for promotion of contract farming. Government is also promoting adoption of e-National Agriculture Market (e-NAM) scheme for transparent price discovery for remunerative prices for the farmers for their produce through competitive online bidding system. In addition, in Union Budget 201819,  Government  has  announced  to  develop  and  upgrade  rural  haats  to  Gramin  Agriculture Market (GrAMs) through convergence of various scheme with a view to assist farmers to sale their  produce  direct  to  buyers  and  bulk  consumers  for  realising  better  prices.  Besides, Government  of  India  has  been  promoting  development  of  marketing  infrastructure  through various  schemes  such  as  Agricultural  Marketing  Infrastructure  (AMI),  Mission  for  Integrated Development of Horticulture (MIDH) & Rashtriya Krishi  Vikas Yojana (RKVY).

(e): The Government of India along with various State Governments formulate procurement plan  to  procure  notified  agriculture  produce  from  the  farmers.  The  steps  taken  to  ensure remunerative price to farmers are at Annexure-II.

## Annexure-I

The production and procurement of rice & wheat from 2004-05 to 2018-19

(Fig. in LMT)

| KMS/RMS   | Rice       | Rice        | Rice                                    |            |             |                                         |
|-----------|------------|-------------|-----------------------------------------|------------|-------------|-----------------------------------------|
| KMS/RMS   | Production | Procurement | Percentage of Procurement to Production | Production | Procurement | Percentage of Procurement to Production |
| 2004-05   | 831.3      | 246.72      | 29.68%                                  | 721.6      | 167.95      | 23.27%                                  |
| 2005-06   | 917.9      | 275.78      | 30.04%                                  | 686.4      | 147.85      | 21.54%                                  |
| 2006-07   | 933.6      | 251.07      | 26.89%                                  | 693.5      | 92.31       | 13.31%                                  |
| 2007-08   | 966.9      | 287.36      | 29.72%                                  | 758.1      | 111.28      | 14.68%                                  |
| 2008-09   | 991.8      | 341.04      | 34.39%                                  | 785.7      | 226.89      | 28.88%                                  |
| 2009-10   | 890.9      | 320.34      | 35.96%                                  | 806.8      | 253.82      | 31.46%                                  |
| 2010-11   | 959.8      | 341.98      | 35.63%                                  | 808.0      | 225.13      | 27.86%                                  |
| 2011-12   | 1053.0     | 350.60      | 33.30%                                  | 868.7      | 283.35      | 32.62%                                  |
| 2012-13   | 1052.4     | 340.44      | 32.35%                                  | 948.8      | 381.48      | 40.21%                                  |
| 2013-14   | 1066.5     | 318.45      | 29.86%                                  | 935.1      | 250.92      | 26.83%                                  |
| 2014-15   | 1054.8     | 320.40      | 30.38%                                  | 958.5      | 280.23      | 29.24%                                  |
| 2015-16   | 1044.1     | 342.18      | 32.77%                                  | 865.3      | 280.88      | 32.46%                                  |
| 2016-17   | 1097.0     | 381.06      | 34.74%                                  | 922.9      | 229.61      | 24.88%                                  |
| 2017-18   | 1129.1     | 381.84      | 33.82%                                  | 985.1      | 308.24      | 31.29%                                  |
| 2018- 19* | 992.4      | 337.40#     | 34.00%                                  | 997.0      | 357.95      | 35.90%                                  |

## The steps taken to ensure remunerative price to farmers are as under:-

(i) The Minimum Support Price (MSP) is announced by the Government at the beginning of the sowing season of crops.

(ii)  MSP  operations  are  given  wide  publicity  through  pamphlets,  banners,  sign  boards radio, TV and advertisements through print & electronic media.

(iii)  Farmers  are  made  aware  of  the  quality  specifications  and  purchase  system  etc.  to facilitate the farmers to bring their produce conforming to the specifications.

(iv) Procurement centres are opened by respective State Govt. / Central Agencies taking into account the production, marketable surplus, convenience of farmers and availability of other logistics / infrastructure such as storage and transportation etc. Large number of temporary purchase centres in addition to the existing Mandis and depots/godowns are also established at key points for the convenience of the farmers.

(v) For further strengthening the system that the farmers directly get the MSP announced by  GOI,  the  GOI  decided  to  do  away  with  the  levy  system  of  procurement  of  rice  with effect from KMS 2015-16, allowing the entire procurement of paddy to be done only by the State Agencies/FCI.

(vi) Payment to farmers is done largely through electronic mode or Account payee cheque by State Agencies/FCI other than in Punjab & Haryana where it is made to Arthiyas as per APMC Acts of the respective State. Efforts are made to make the payments to the farmers within 48 hours of purchase.

(vii) FCI  has  developed  its  own  Depot  Online  System  which  ushers  in  transparency and  convenience  to  the  farmers  through  proper  registration  and  monitoring  of  actual procurement.  The  States  have  also  been  encouraged  to  procure  the  produce  of  the farmers  online.  Through  Depot  Online  System,  farmers  get  latest/updated  information regarding MSP declared, nearest purchase centre, date on which the farmer has to bring his  produce  to  the  purchase  centre  etc.  This  not  only  reduces  the  waiting  period  for delivery  of  stock by  the farmers but also enables the farmer to  deliver stock as per  his convenience  in  the  nearest  mandi.  MSP  is  released  through  either  electronic  mode  or Account payee cheque directly to the bank accounts of the farmers except in Punjab & Haryana whereas per APMC Acts of the respective state, payment is made to Arthiyas.

********