Lok Sabha Question No. 120 (STARRED), answered on 2018-12-18
Subject: Sale of Produce below MSP
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: KAUSHAL KISHORE

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

## LOK  SABHA STARRED QUESTION NO. 120

TO BE ANSWERED ON THE 18 TH  DECEMBER, 2018

## SALE OF PRODUCE BELOW MSP

- *120.    SHRI KAUSHAL KISHORE:

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

- (a) whether it is a fact that more than 60 per cent markets in the country are still selling agricultural produce below the Minimum Support Price (MSP);
- (b) if so, the details thereof;
- (c) whether steps are being taken by the Government to improve the situation on the ground in providing at least the MSP to the farmers; and
- (d) 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 RADHA MOHAN SINGH)

- (a) to (d): A statement is laid on the Table of the House.

## STATEMENT  REFERRED  TO  IN  REPLY  TO  PARTS  (a)  TO  (d)  OF  LOK  SABHA STARRED QUESTION NO.  120   DUE FOR REPLY ON 18 TH  DECEMBER, 2018.

(a) & (b): No Madam.  The price of agricultural produce is dependent on variety of factors  at  any  given  point  of  time  like  demand  and  supply  of  the  produce,  climatic conditions,  perishable  nature  of  produce  and  availability  of  transport.    The  quality parameters also play an important role in the price of a commodity and procurement under Minimum Support Price (MSP) is subject to certain quality parameters.  The price of  agricultural  produce  is  usually  low  immediately  after  its  harvest  due  to  increased supply in the market, which gradually picks up thereafter.

(c)  &  (d):            Under  the  present  procurement  mechanism,  Government  agencies procure  the  notified  agricultural  produce  of  Fair  Average  Quality  (FAQ)  at  Minimum Support Price (MSP) from farmers in consultation with the concerned State Government,  as  per  prescribed  guidelines.    However,  if  farmers  get  better  price  in comparison to MSP, they are free to sell their produce in open market.  Government has increased the Minimum Support Prices (MSPs) for all notified Kharif & Rabi Crops and other commercial crops for the season 2018-19 with a return of atleast 50 percent over cost of production.

To ensure remunerative prices to farmers for their produce, the Government of India has launched an umbrella scheme 'Pradhan Mantri Annadata Aay SanraksHan Abhiyan (PM-AASHA)'. Under PM-AASHA, the Department of Agriculture, Cooperation  and  Framers  Welfare  (DAC&FW),  Ministry  of  Agriculture  &  Farmers Welfare implements the Price   Support Scheme   (PSS)  for    procurement of pulses,

-2- oilseeds  and  copra.    For  oilseeds,  DAC&FW  also  implements  the  Price  Deficiency Payment Scheme (PDPS).  However, States/UTs have options to choose either PSS or PDPS in a given procurement season with respect to a particular oilseed crop for the entire State.  Besides, DAC&FW also implements Private Procurement & Stockist Scheme (PPSS) for oilseeds pilot basis and States have the option for implementation of PPSS  in district/selected APMC(s)  of district involving the participation of private stockist.

Further, under PM-AASHA, procurement for paddy, wheat and coarse grains are  done  by  Department  of  Food  &  Public  Distribution  (DFPD)    through  Food Corporation of India (FCI).  Further,  Cotton and Jute are procured by the Ministry of Textiles through Cotton Corporation of India (CCI) and Jute Corporation of India (JCI) respectively as per extant guidelines.

Procurement  under  Central  Pool  for  Wheat  has  increased  from    229.62  Lakh Metric Ton (LMT) in 2016-17 to 308.24 LMT in 2017-18 and further increased to 357.95 LMT during 2018-19.  Similarly, the procurement under Central Pool for Paddy in terms of Rice has been  357.95 Lakh Metric Ton (LMT) in 2016-17,  381.85 LMT in 2017-18 and has been 211.03 LMT so far, during the ongoing procurement for 2018-19.

Under  Price  Support  Scheme  (PSS),  during  Kharif  Marketing  Season  (KMS) 2017-18,  sanctions  were  accorded  for  procurement  of  33,94,290  MT  of  pulses  and oilseeds  in  9  States  through  866  centres  and  for  KMS  2018-19,  sanctions  were accorded  so  far  for    pulses  and  oilseeds  for  50,20,499  MT  (including  PDPS)  in  11 States through 2066 centres.

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