Lok Sabha Question No. 1591 (UNSTARRED), answered on 2019-02-12
Subject: Plans for Fair Remuneration and Compensation to Farmers
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: AJAY (TENI) MISRA

## 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 (c): As per the provisions of Sugarcane(Control) Order, 1966, the sugar mills are required to purchase sugarcane from cane farmers at a Fair and Remunerative Price (FRP) fixed by the Central Government, which is the minimum bench mark price below which sugar mills cannot purchase cane from the cane growers. The FRP is decided on the basis of the recommendations  of  the  Commission  for  Agricultural  Costs  and  Prices  (CACP),  after consulting the State Governments and associations of sugar industry.

Accordingly,  FRP  for  2018-19  sugar  season  has  been  fixed  at  Rs  275  per  quintal linked to a basic recovery of 10% subject to a premium of Rs 2.75 per quintal for each 0.1 % increase of recovery over and above 10 % and reduction in FRP at the same rate for each 0.1 % decrease in the recovery rate till 9.5%. With a view to protect interest of farmers the Government has decided that there shall not be any deduction in case where recovery is below 9.5%, such farmers will get Rs 261.25 per quintal for sugarcane in the current season 2018-19.

Steps  taken  by  the  Government  to  ensure  remunerative  prices  to  the  farmers producing horticulture crops including vegetables and sugarcane are as under:

O.I.H.

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

## LOK  SABHA UNSTARRED QUESTION NO.1591

TO BE ANSWERED ON THE  12 TH  FEBRUARY, 2019

## PLANS FOR FAIR REMUNERATION AND COMPENSATION TO FARMERS

1591. SHRI AJAY MISRA TENI:

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

- (a) whether the Government has prepared/intends to prepare any plan to enable farmers to  get fair price and to recover from losses while keeping in mind the problems of farmers growing vegetables and sugarcane including falling prices and high production cost;
- (b) if so, the benefits likely to be availed by the farmers; and
- (c) if not, the reasons therefor?

-  Farmers are mobilized in to Farmer Producer Organisations (FPOs) for aggregation and economies of scale.  Efforts  are  being  made  to  link  FPOs  to  market  by  way  of direct marketing farmer consumer markets/apni mandi and e-markets.
-  Assistance  is  also  provided  for  development  of  post  harvest  management  and marketing  infrastructure  such  as  cold  storages,  cold  room,  packaging  and  grading house, reefer vehicles, , primary and wholesale markets, kisan mandies etc.
-  Farmers  are  made  aware  of  the  processing  facilities/mega  food  parks  nearby  and processable varieties of horticulture crops.
-  Government  implements  Market  Intervention  Scheme  (MIS)  in  order  to  protect  the growers of these commodities from making distress sale in the event of bumper crop when the prices tend 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.

## Sugarcane

-  To enhance production and productivity of sugarcane in the country, Government has been implementing Sugarcane Development Programme  under  National Food Security  Mission  -  Commercial  Crops  (NFSM-CC)  in  13  major  sugarcane  growing states  of  the  country  viz.  Andhra  Pradesh,  Bihar,  Gujarat,  Haryana,  Karnataka, Madhya Pradesh, Maharashtra, Odisha, Punjab, Telangana, Tamil Nadu, Uttarakhand and Uttar Pradesh from 2014-15. Under this scheme thrust has been given on transfer of technology through frontline demonstrations and training in order to extend benefits to  the  farmers. The components under NFSM-CC Sugarcane include demonstration on  inter-cropping  and  single  bud  chip  technology  with  sugarcane,  assistance  for breeder  seed  production,  production  /  supply  of  tissue  culture  plantlets/seedlings, distribution of plant protection chemicals and bio-agents, etc.
-  The  states  can  also  support  Sugarcane  Development  Programme  under  Rashtriya Krishi Vikas Yojana (RKVY) with the approval of State Level Sanctioning Committee (SLCC).
-  The Central Government also provides loans from Sugar Development Fund (SDF) at concessional rates to sugar mills for cane development thereby benefiting sugarcane farmers.

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