Lok Sabha Question No. 219 (UNSTARRED), answered on 2018-12-11
Subject: Minimum Support Price
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: SUKENDER REDDY GUTHA

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

## LOK  SABHA UNSTARRED QUESTION NO.219

TO BE ANSWERED ON THE  11 TH  DECEMBER, 2018

## MINIMUM SUPPORT PRICE

219.   SHRI GUTHA SUKENDER REDDY:

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

- (a) whether  the  Government  has  taken  note  of  the  dharna  of  Kisan  Khet  Mazdoor Congress  which  made  an  agitation  on  the  Parliament  Street  seeking  redressal  of  their problems viz, Minimum Support Price for their crops, increase in farmers suicides during the last four years, clearing their debts, etc. and if so, the details thereof;
- (b) whether it is true that even though Centre has announced MSP for some crops it is not sufficient and moreover there are no proper system to purchase farmers' products; and
- (c) whether  the  Government  has  taken  any  decision  in  the  matter  to  alleviate  the problems of farming community, if so, the details thereof?

## ANSWER

MINISTER OF  STATE IN THE  MINISTRY OF  AGRICULTURE AND  FARMERS  WELFARE

कृ ष एवं कसान कयाण मंालय म राय मंी ( SHRI GAJENDRA SINGH SHEKHAWAT)

- (a): From time to time, some farmers and farmers' organizations have been agitating and making  certain  demands  like  increase  in  Minimum  Support  Prices  (MSPs)  for  agricultural crops and other agricultural policies.
- (b): The Union Budget for 2018-19 had announced the pre-determined principle to keep MSP at levels of one and half times the cost of production. Accordingly,  Government has increased  the  Minimum  Support  Prices  (MSPs)  for  all  notified  Kharif,  Rabi  and  other commercial crops  with  a  return  of  atleast  50  percent  of  cost  of  production  for  the  season 2018-19.  This  decision  of  the  Government  was  also  a  historic  one  as  it  redeemed  the promise of fixing the MSPs atleast at a level of 50 per cent return over cost of production.

As per the existing arrangements, procurement is made of the crops for which MSPs are  announced through  Central  and  State  agencies.  In  so  far  as  cereals/nutri  cereals  are concerned,  they  are  procured  through  Food  Corporation  of  India  (FCI)  and  decentralized procurement  system mainly  for  distribution  under  the  public  distribution  system  (PDS),  for welfare  schemes  and  buffer  stocking  for  food  security.  Government  implements  Price Support Scheme (PSS) for procurement of oilseeds, pulses and cotton through Central Nodal Agencies at MSP declared by the Government. This scheme is implemented at the request of the state government concerned which agrees to exempt the procured commodities from levy  of  mandi  tax  and  other  state  duties.  The  basic  objectives  of  PSS  are  to  provide remunerative  prices  to  the  growers  for  their  produce  with  a  view  to  encourage  higher investment  and  production  and  to  safeguard  the  interest  of  the  consumers  by  making available supplies at reasonable price with low cost of intermediation.

The recently launched Umbrella Scheme  Pradhan  Mantri  Annadata Aay Sanrakshan Abhiyan (PM-AASHA) provides for a holistic arrangement for assurance of a remunerative and  stable  price  environment  for  growers  /farmers  to  increase  agriculture  production  and productivity.  This  Umbrella  Scheme  comprises  Price  Support  Scheme  (PSS)  for  pulses  & oilseeds,  Price  Deficiency  Payment  Scheme  (PDPS)  &  Pilot  of  Private  Procurement &Stockist Scheme (PPSS) for oilseeds to ensure MSP to the farmers.

(c): Government  is  committed  to  farmer's  welfare  and  towards  this  objective  it  has changed its strategy from being production centric to an income centric one. The MSP policy whereby the farmers are assured of a minimum of 50 percent as margin of profit is another progressive step forward in a series of reforms that the Government has been rolling out for the last 4 years, committed as it is to doubling farmers' income by 2022 and improving the welfare  substantively.  At  present,  the  Government  is  implementing  various  schemes  and recalibrating them based on the suggested intervention to synchronise with higher gains for the  farmers  which  include  Soil  Health  Cards  (SHC),  production  and  availability  of  quality seeds,  Pradhan  Mantri  Krishi  Sinchai  Yojana  (PMKSY),  e-  National  Agriculture  Market  (eNAM),  Pradhan  Mantri  Fasal  Bima  Yojana  (PMFBY),  Paramparagat  Krishi  Vikas  Yojana (PKVY),  National  Mission  for  Sustainable  Agriculture  (NMSA)  and  promotion  of  allied activities like dairying, poultry, beekeeping and fisheries.

Budget for 2018-19 has announced its intent to develop and upgrade existing 22,000 rural  haats  into  Gramin  Agricultural  Markets  (GrAMs).  Toward  this  end  an  Agri-Market Infrastructure  Fund  with  a  corpus  of  Rs  2000  crore  has  been  proposed.  These  GrAMs, electronically  linked  to  e-NAM  and  exempted  from  regulations  of  Agricultural  Produce Marketing Committee (APMCs), will provide farmers facility to make direct sale to consumers and bulk purchasers.

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