Lok Sabha Question No. 543 (UNSTARRED), answered on 2019-06-25
Subject: Distress Selling by Farmers
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: Pankaj Chowdhary

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

## LOK  SABHA

## UNSTARRED QUESTION NO. 543 TO BE ANSWERED ON THE 25 TH   JUNE, 2019

## DISTRESS  SELLING  BY  FARMERS

543.     SHRI  PANKAJ CHAUDHARY:

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

- (a) whether the farmers are compelled to  sell  their  agricultural  produce  in  the market at a price lower than the minimum support  price;
- (b) if so, the details thereof; and
- (c) whether    the    Government    is  considering  to  provide  minimum  support  price  to  the farmers for their agricultural produce, if so, the details thereof along with the efforts made by the Government so far in this direction?

## ANSWER

MINISTER  OF AGRICULTURE AND FARMERS WELFARE

कृ ष एवं कसान कयाण मंी (SHRI NARENDRA SINGH TOMAR)

(a) & (b): The price of agricultural produce is dependent on variety of factors at any given point of time like demand and supply of the produce, climatic conditions, perishable nature of produce and availability of transport.  The quality parameters also play an important role in the price of a commodity and procurement under Minimum Support Price (MSP) is subject to certain quality parameters.

- (c):      Under the present procurement mechanism, Government agencies procure the notified agricultural  produce  of  Fair  Average  Quality  (FAQ)  at  Minimum  Support  Price  (MSP)  from farmers  in  consultation  with  the  concerned  State  Government,  as  per  prescribed  guidelines. However, if farmers get better price in comparison to MSP, they are free to sell their produce in open  market.  The  Government  has  increased  the  Minimum  Support  Prices  (MSPs)  for  all notified Kharif & Rabi Crops and other commercial crops for the season 2018-19 with a return of at least 50 percent over cost of production.

To ensure remunerative prices to farmers for their produce, the Government of India has launched  an  umbrella  scheme  'Pradhan  Mantri  Annadata  Aay  SanraksHan  Abhiyan  (PMAASHA)'.    Under  PM-AASHA,  Department  of  Agriculture,  Cooperation  &  Farmers  Welfare (DAC&FW),    Ministry of Agriculture & Farmers Welfare, implements the Price Support Scheme

(PSS) for procurement of pulses, oilseeds and copra. For oilseeds, DAC&FW also implements Price  Deficiency  Payment  Scheme  (PDPS).    However,  States/UTs  have  options  to  choose either PSS or PDPS in a given procurement season with respect to a particular oilseed crop for the entire State. Besides, DAC&FW also implements Private Procurement & Stockist Scheme (PPSS) for oilseeds on pilot basis and States have the option for implementation of PPSS in district/selected APMCs of the district involving the participation of private stockiest.

Further, under PM-AASHA, procurement of paddy, wheat and coarse grains are done by Department  of  Food  &  Public  Distribution  through  Food  Corporation  of  India  (FCI).  Further, Cotton  and  Jute  are  procured  by  the  Ministry  of  Textiles  through  Cotton  Corporation  of  India (CCI) and Jute Corporation of India (JCI) respectively as per extant guidelines.

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