Lok Sabha Question No. 1470 (UNSTARRED), answered on 2019-02-12
Subject: Access to APMC Mandis
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: A. ARUNMOZHITHEVAN

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

## LOK  SABHA UNSTARRED QUESTION NO.1470

TO BE ANSWERED ON THE 12 TH   FEBRUARY, 2019

## ACCESS TO APMC MANDIS

1470.    SHRI   A.  ARUNMOZHITHEVAN:

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

- (a) whether  it  is  true  that  often  farmers  of  remote  areas  do  not  have  sufficient  acces  to Agricultural Produce Market Committee mandis and their potential market is local haats where their produce  is sold  below the minimum support price;
- (b) if so, the details thereof;
- (c) whether it is also true that strong procurement  operations  need  to  be expanded to the neglected regions; and
- (d) 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) to (d): Agricultural  marketing  is  a  state  subject  and  organized  marketing  of  agricultural produce is promoted through a network of 6630 regulated markets in the country established under  the  provisions  of  respective  States  Agricultural  Produce  Marketing  (Regulation)  Acts, popularly called Agricultural Produce Market Committee (APMC ) Acts.  Since , one regulated market serves  on an  average geographical area of 496 sqkm, therefore, small and marginal farmers of the remote areas with this small produce  have been using rural haats located near to farm gate.

In Union Budget 2018-19, Government has announced development and upgradation of existing 22000 Village Haats into  Gramin Agricultural Markets (GrAMs) through convergence of various  schemes  such  as  Mahatma  Gandhi  National  Rural  Employment  Guarantee  Scheme (MGNREGS) and others.  These GrAMs are to be exempted from State APMC regulations and linked to e-NAM.  These GrAMs are intended to act as aggregation point for small produce and helping the farmers in getting better prices by way of sale to direct buyers and bulk consumers.

In  order  to  provide  farmers  with  alternative  marketing  channels,    Government  has released  a  new  model  'The  Agricultural  Produce  and  Livestock  Marketing  (Promotion  & Facilitation)  Act,  2017'  (APLM  Act)  in  April  2017  for  its  adoption  by  States/Union  Territories (UTs).  The  model  APLM  Act  provides  for  setting  up  private  markets  and  direct  marketing facilities to farmers.  Further, in  order to  optimize   the use of scarce resources and mitigate the uncertainty in price

Contd..2/-

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 (UTs)  which  covers  the  entire  value  and  supply  chain  from  pre-production  to  post  harvest marketing including services contract for the agricultural produce and livestock.

Giving a major boost to the pro-farmer initiatives of the Government and in keeping with its commitment and dedication for the Annadata for ensuring remunerative prices to them, the Government has approved a new Umbrella Scheme Pradhan Mantri Annadata Aay Sanrakshan Abhiyan'  (PM-AASHA).  Procurement  of  agricultural  produce  is  done  by  the  designated procuring  agencies,  at  the  Minimum  Support  Price  (MSP)  under  the  Price  Support  Scheme (PSS), which is notified by the Government for certain crops.  In addition, the Government also undertakes  procurement  of  oilseeds  &  pulses  through  agencies  like  National  Agricultural Cooperative Marketing Federation of India Ltd. (NAFED).

Keeping  in  view  the  procurement  potential  and  geographical  spread  of  the  State concerned,  sufficient  numbers  of  procurement  centres  at  key  points  are  opened  by  Food Corporation of India (FCI)/State Government agencies for  procurement of paddy/rice and wheat at MSP for convenience of farmers.

A policy had also been framed by Government of India (GOI) for engagement of private players in paddy/rice procurement in eastern states for extending the reach of MSP operation to remote & interior areas. Accordingly, Private players were engaged by FCI in some clusters in Jharkhand, West Bengal and Uttar Pradesh during Kharif Marketing Season (KMS) 2015-16 to KMS 2017-18 i.e. for three years.

There exists a transparent & Uniform Policy for procurement by Govt. Agencies across the country.  Under  this  policy,  whatever  food  grains  are  offered  by  farmers  within  the  stipulated procurement period,  conforming to the specifications  prescribed  by  Government  of  India,  are purchased at MSP by the Govt. agencies including FCI. However, if any producer/farmer gets better price in comparison to MSP, he is free to sell his produce in Open market.

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