Lok Sabha Question No. 4993 (UNSTARRED), answered on 2019-07-23
Subject: Volatile Prices for Agricultural Commodities
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: Parvesh Sahib Singh

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

## LOK  SABHA

## UNSTARRED QUESTION NO.4993 TO BE ANSWERED ON 23 RD  JULY, 2019

## VOLATILE PRICES FOR AGRICULTURAL COMMODITIES

4993.  SHRI PARVESH SAHIB SINGH:

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

- (a) whether  there  is  acute  problem  for  farmers  of  highly  volatile  and  low  prices  of agricultural  commodities  across  States  including  Delhi  and  if  so,  the  steps  taken  by  the Government in this regard;
- (b) whether  the  Government  plans  to  introduce  reforms  with  regard  to  Agricultural Produce Marketing Committee across India including Delhi and if so, the details thereof; and
- (c) whether the Government is taking steps to introduce 'E-Mandis' across India to make the agriculture marketing process transparent and farmer friendly, if so, the details thereof and if not, the reasons therefor?

## ANSWER

## MINISTER OF AGRICULTURE AND FARMERS WELFARE

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

- (a) The prices of agricultural produce are determined by supply and demand conditions in  the  market  on  a  day-to-day  basis.  Price  of  agricultural  produce  tends  to  fall  after  the harvesting season due to increase in market arrival of new crop in a lumpy manner. There is no general indication that farmers are getting low prices for their produce. The all India average annual wholesale prices are more or less close to the level of Minimum Support Prices (MSP) for MSP crops. A statement showing all India wholesale prices and MSP of major agricultural crops is given at Annexure .

Government  fixes  the  Minimum  Support  Prices  (MSPs)  of  22  mandated  agricultural crops and Fair and Remunerative Prices (FRP) for sugarcane based on the recommendations of the Commission for Agricultural Costs & Prices (CACP). These crops cover 99% of agricultural output.

As  announced  in  the  Union  Budget  2018-19,  the  Government  has  increased  the Minimum Support Prices (MSPs) for all mandated Kharif & Rabi Crops and other commercial crops for the season 2018-19 with a return of at least 50 percent over cost of production. Government offers  to  procure  mandated  agricultural  produce  at  MSP  as  well  as  supports farmers  price  received  in  the  Mandies  through  Price  Deficiency  Payment  Scheme  on  the basis  of  the  proposals  received  from  State  Governments  concerned.  Government  is  also implementing Market Intervention Scheme (MIS) on the request of the State/UT Government for procurement of agricultural and horticultural commodities, generally perishable in nature, and not covered under the price support scheme for MSP.

(b): In  order  to  provide  better  marketing  facilities  to  the  farmers,  the  Government  has released  a  new  model  'The  Agricultural  Produce  and  Livestock  Marketing  (Promotion  & Facilitation) Act, 2017' in April 2017 for its adoption by States/ UTs. 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, In order to optimize the use of scarce resources and mitigate the uncertainty in  price  and  marketing,  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. The aforesaid Model Contract Farming Act covers the entire value and supply chain from pre-production to post harvest marketing including services contract for the agricultural produce and livestock.

(c): Three  reforms  are  mandatory  for  States/Union  Territories  in  their  respective  State Agricultural Produce Market Committee (APMC) Acts for integrating their mandis with e-NAM platform i.e. (i) Provision for e-trading, (ii) Single point levy of market fee, (iii) Unified Single trading license for the State. States without APMC Act need to provide legally enforceable guidelines  and  institutional  mechanism  for  implementing  e-NAM.  Based  on  the  proposals received from the compliant States/Union Territories, mandis are considered for integration by Government of India with e-NAM platform. Government of India provides assistance to the States, such as free access to e-NAM platform, financial assistance for computer hardware, electronic  weighing  scale,  assaying  equipments  and  networking.  So  far,  585  wholesale regulated markets of 16 States and 02 UTs have been integrated with e-NAM platform.

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ANNEXURE

## All India Average Monthly Wholesale Prices and Minimum Support Prices (MSP) of Major Agricultural Crops

(Rupees/Quintal)

| Commodity      | MSP 2018-19   |   April, 2019 |   May, 2019 |   June,2019 |
|----------------|---------------|---------------|-------------|-------------|
| Paddy          | 1750          |          1780 |        1793 |        1787 |
| Bajra          | 1950          |          2171 |        2207 |        2149 |
| Barley         | 1440          |          1745 |        1795 |        1816 |
| Gram           | 4620          |          4679 |        4796 |        4676 |
| Jowar          | 2430          |          2637 |        2625 |        2678 |
| Maize          | 1700          |          1943 |        1973 |        1977 |
| Ragi           | 2897          |          2715 |        2690 |        2731 |
| Wheat          | 1840          |          2108 |        2120 |        2116 |
| Arhar Whole    | 5675          |          5108 |        5557 |        5521 |
| Masur Whole    | 4475          |          4768 |        4902 |        4932 |
| Moong Whole    | 6975          |          5952 |        6211 |        6353 |
| Urad Whole     | 5600          |          5230 |        5441 |        5397 |
| Groundnut      | 4890          |          5035 |        5132 |        5386 |
| Copra          | 9521*         |         11148 |       10583 |       10258 |
| Kardiseed      | 4945          |          3757 |        4047 |        4332 |
| Mustard Seed   | 4200          |          3978 |        4073 |        4071 |
| Nigerseed      | 5877          |          4732 |        4700 |        4648 |
| Sesamum Seed   | 6249          |          9883 |        9782 |        9922 |
| Soyabean       | 3399          |          3675 |        3742 |        3701 |
| Sunflower Seed | 5388          |          3705 |        3567 |        3508 |
| Cotton/Kapas   | 5150          |          5785 |        5839 |        5836 |
| Jute Raw       | 3700          |          4259 |        4336 |        4289 |
| Potato         | Not fixed     |          1074 |        1149 |        1187 |
| Onion          | Not fixed     |          1114 |        1315 |        1587 |
| Tomato         | Not fixed     |          2060 |        3273 |        2320 |