Lok Sabha Question No. 87 (UNSTARRED), answered on 2018-12-11
Subject: Minimum Support Price
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: FEROZE VARUN GANDHI

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

## LOK  SABHA UNSTARRED QUESTION NO. 87

TO BE ANSWERED ON THE 11 TH  DECEMBER, 2018

## MINIMUM  SUPPORT  PRICE

## 87. SHRI FEROZE VARUN GANDHI:

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

- (a) whether the Government is aware that  in  Madhya  Pradesh  and  Rajasthan, farmers are  getting  less  than  the  Minimum  Support  Price  (MSP)  for  kharif  crops  such  as  tur  and soyabean except paddy and if so,  the  measures  being  taken  to  contain farmers' distress in this regard;
- (b) the  reasons for not adopting the MSP  formula  recommended  by  the Swaminathan Commission  despite promises for the same;
- (c) whether the Government is aware of the drought like conditions prevailing in the Nashik district of Maharashtra and the demands of the farmers during the protest march;
- (d) if  so,  the    measures  proposed  or  taken  by  the  Government  in  co-ordination  with  the State Government of Maharashtra; and
- (e) whether    the    Government    is  planning  to  come  out  with  any    proposal  for    helping farmers  find  mechanical alternatives to crop-burning in the States of Punjab and Haryana and 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  PARSHOTTAM  RUPALA)

- (a) : Under the present procurement mechanism of Price Support Scheme (PSS), Government agencies procure the notified pulses and oilseeds of Fair Average Quality (FAQ) at Minimum Support Price (MSP) directly from farmers in consultation  with the concerned  State Governments / Union Territories as and when market price of these commodities fall below the MSP.  The  payments  to the farmers are made  through Real Time  Gross  Settlement (RTGS)/National Electronic Fund Transfer (NEFT) and account payee cheque by the procuring agencies. However, if farmer gets better price in comparison to MSP, they are free to sell their produce in open market. In the State of Rajasthan, sanctions for procurement of present Kharif pulses and oilseeds including soyabean have been granted as per the prescribed guidelines of PSS. In the state of Madhya Pradesh, for the farmers to get MSP of Soyabean, sanction has been  granted  as  per  the  prescribed  guideline  of  Price  Deficiency  Payment  Scheme  (PDPS). For procurement of Tur in Madhya Pradesh, sanction has been granted as per the prescribed guidelines of PSS.

Contd…2/-

(b): National Commission on Farmers headed by Dr. M.S. Swaminathan submitted its report in  2006.  One  of  the  recommendations  of  Commission  was  that  MSP  should  be  at  least  50 percent  more  than  the  weighted  average  cost  of  production.  This  recommendation  was  not incorporated  in  the  National  policy  for  Farmers  2007.  However,  recently  Government  has increased  the  MSP  for  all  Kharif  and  Rabi  crops  and  other  commercial  crops  for  the  season 2018-19 with a return of atleast 50 percent over cost of production.

(c) & (d): Government  of  Maharashtra  declared  drought  in  26  districts,  including  Nashik during Kharif 2018. In response, Government of India has constituted an Inter Ministerial Central Team (IMCT) for assessing the drought situation in the State.

(e): Government has introduced a new Central Sector Scheme on 'Promotion of Agricultural Mechanization for In-Situ Management of crop residue in the States of Punjab, Haryana, Uttar Pradesh and NCT of Delhi' for the period from 2018-19 to 2019-20 with the total outgo from the Central funds of ₹ 1151.80 crore. The details of the scheme is at Annexure-I.

## Annexure-I

Department of Agriculture, Cooperation & Farmers Welfare has introduced a new Central Sector  Scheme  on  promotion  of  Agricultural  Mechanization  for  in-Situ  Management  of  Crop Residue in the States of Punjab, Haryana, Uttar Prdesh and NCT of Delhi' for the period from 2018 - 19 to 2019 - 20 has  been introduced  with  the  total  outgo from   the   Central   funds of ₹ 1151.80 crore(₹ 591.65 crore in 2018-19 and ₹ 560.15 crore in 2019-20).

The scheme has the following components (100% Central Share)

(i) Establish  Farm  Machinery  Banks  for  Custom  Hiring  of  in-situ  crop residue  management  machineryfinancial  assistance  @  80%  of  the  project  cost  is provided to  the Co-operative Societies of  farmers,  FPOs,  Self-Help Groups, registered Farmers Societies / farmers group, Private Entrepreneurs. Group of women farmers or self-help groups for establishment of farm machinery banks or custom hiring centres of in-situ crop residue management machinery.

(ii) Financial Assistance to farmers for procurement of Agriculture Machinery and Equipment for in-situ crop residue managementfinancial assistance @  50%  of  the  cost  of  machinery  /  equipment  is  provided  to  individual  farmers  for purchase of machinery/ equipment for crop residue management.

(iii) Information, Education and Communication for awareness on insitu  crop residue managementfinancial assistance's provided to the State Governments,  KVKs,  ICAR  Institutions,  Central  Government  Institutions,  PSUs  etc. for the activities to be undertaken towards information Education and Communication (IEC)

## Funds Released: (₹ in Crore)-2018-19

| States Agency   |   Establishment of CHCs |   Distribution of machinery |   IEC activities |   Flexi Funds/Admn. Expenses |   Total |
|-----------------|-------------------------|-----------------------------|------------------|------------------------------|---------|
| Punjab          |                  176    |                       71.3  |            16.8  |                         5.28 |  269.38 |
| Haryana         |                   72    |                       41.5  |            21.64 |                         2.7  |  137.84 |
| Uttar Pradesh   |                   37.58 |                       95.27 |            12.84 |                         2.91 |  148.6  |
| ICAR            |                    0    |                        0    |            19.36 |                         0    |   19.36 |
| Total           |                  285.58 |                      208.07 |            70.64 |                        10.89 |  575.18 |

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