Lok Sabha Question No. 118 (UNSTARRED), answered on 2018-12-11
Subject: Remunerative Prices for Farm Produces
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: SANJAY HARIBHAU JADHAV

O.I.H

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

## LOK  SABHA

## UNSTARRED QUESTION NO. 118

TO BE ANSWERED ON THE 11 TH  DECEMBER, 2018

## REMUNERATIVE  PRICES FOR FARM PRODUCES

118.   SHRI SANJAY HARIBHAU JADHAV:

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

- (a) whether the economic condition of  the  farmers  is  not  improving  in Maharashtra due to absence of sufficient rains and good quality seeds as well as not receiving remunerative price for their crops;
- (b) whether farmers could not recover even the production cost on the last crop of potatoes which ruined them;
- (c) if so, the details thereof;
- (d) the  efforts  being  made  by  the Government  to  provide  remunerative prices to the farmers for their crops; and
- (e) the details thereof and if not, the reasons therefor?

## 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): Small or marginal agricultural land holdings, traditional methods of farming, non-use of quality seeds, poor soil health, low irrigation facilities, inadequate access to institutional credit etc,  which  result  in  lower  productivity  and  output;  poor  farm  gate  prices  realization  owing  to inadequate  access  to  marketing  facilities  &  post-harvest  support  services;  and  inadequate income  supplementation  from  allied  sector  are  some  of  the  factors  resulting  in  the  extant economic condition of the farmers in certain parts of the country including parts of Maharashtra.

(b) & (c): Horticulture  produce  including  potato  is  perishable  in  nature  due  to  moisture content and cannot be stored at ambient temperature for longer period. Therefore, arrival of the crops in very high volumes in a lumpy manner during the peak harvesting season sometimes depresses prices of such crops as they are determined by supply and demand conditions in the market.

However, Government implements Market Intervention Scheme (MIS) for procurement of agricultural  and  horticultural  crops  which  are  not  covered  under  the  MSP  on  the  request  of State/UT Governments concerned. The MIS is implemented in order to protect the growers of these commodities from making distress sale in the event of bumper crop when the prices tend Contd..2/-

to fall below the economic   level/cost of   production.   Losses, if any, incurred by the procuring agencies are shared by the Central Government and the concerned State Government on 50:50 basis (75:25 in case of North-Eastern States).  Profit, if any, earned by the procuring agencies is retained by them.

(d) & (e): Government had substantially increased the Minimum Support Prices (MSPs) for all  mandated  kharif,  rabi  and  commercial  crops  for  2018-19  Season.  This  decision  of  the Government is a historic one as it redeems the promise of the pre-determined principle of fixing the MSPs at a level of at least 150 per cent of the cost of production announced by the Union Budget for 2018-19. For the  year 2018-19 all mandated agricultural crops getting at  least 50 percent return over cost of production.

Apart from increasing MSPs, Government has taken several steps to provide remunerative prices to farmers for their produce which include undertaking procurement through designated procurement  agencies, implementing e-National Agriculture Market (e-NAM), enacting the Model Agricultural Produce and Livestock Marketing (Promotion & Facilitation) Act, 2017 and promoting Farmer Producer Organizations (FPOs).

The Government is working on a new market architecture, so as to ensure that farmers get  remunerative  prices  on  their  produce.    These  include  setting  up  of  Gramin  Agricultural Markets (GrAMs) so as to promote 22,000 number of retail markets in close proximity of farm gate; competitive and transparent wholesale trade at APMC through  e-NAM; and a robust and pro-farmer export policy. The new  Umbrella Scheme  Pradhan  Mantri Annadata Aay SanraksHan  Abhiyan' (PM-AASHA) announced by the government is also a progressive step in  this  direction.  The  Umbrella  Scheme  consists  of  three  sub-schemes  i.e.  Price  Support Scheme (PSS), Price Deficiency Payment Scheme (PDPS) and Private Procurement & Stockist Scheme (PPSS) on a pilot basis.

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