Lok Sabha Question No. 3700 (UNSTARRED), answered on 2020-03-17
Subject: Direct Purchase of Agricultural Products from Farmers
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: Kuruva Gorantla Madhav

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

## LOK  SABHA UNSTARRED QUESTION NO. 3700

TO BE ANSWERED ON THE 17 TH  MARCH, 2020

## DIRECT PURCHASE OF AGRICULTURAL PRODUCTS FROM FARMERS

3700. SHRI  KURUVA GORANTLA MADHAV:

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

- (a) whether  the  Government  has  initiated  any  measures  by  appointing  Government agencies for the direct purchase of agricultural products from the farmers to avoid middle man intervention, if so, the details thereof;
- (b) whether the Government is planning to provide any financial assistance to the farmers or Farmer Producer Organisations through NABARD or any financial institutions for promotion of export of agricultural products; and
- (c) whether any reforms have been taken or are proposed to be taken for abolition of Mandi Tax for exporting agri-products, 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): There  is  already  a  mechanism  under  which  Government  purchases  commodities  at Minimum  Support  Price  (MSP)  directly  from  the  farmers,  under  which,  as  per  prescribed guidelines,  procurement  is  made  by  Government  agencies  at  MSP  in  consultation  with  the concerned  State  Government  when  market  price  of  notified  farm  produces  of  Fair  Average Quality (FAQ) goes below MSP. Payment to the farmers is made primarily through Real Time Gross  Settlement  (RTGS)/National  Electronic  Fund  Transfer  (NEFT)  and  account  payee cheque by the procuring agencies. However, if farmers get better price in comparison to MSP, they are free to sell their produce in open market.
- (b): The Government has approved a central sector Scheme 'Formation and Promotion of Farmer Producers Organisations(FPO)'. One of the focus areas of the Scheme is to promote agriculture marketing including exports through production of quality produce with the involvement  of  institution  of  FPOs.  NABARD  is  one  of  the  implementing  agencies  under  the Scheme to form and promote FPOs for which the assistance will be provided.
- (c): Market  Fee  is  levied    and  collected  by  the  Agriculture  Produce  Market  Committees (APMCs) as provisioned and notified under the respective APMC Acts legislated by respective States /Union Territories. Central Government, in order to rationalise levying of market fees on trade transaction of notified agriculture produce, has advised the States  through the Model Act 'The Agriculture Produce and Live Stock Marketing (Promotion and Facilitation ) Act, 2017' to contain  market  fee  upto  2% ad-valorem in  case  of  non  perishables  and  1%  in  case  of perishables.  However,  States  to  promote  export  and  processing  of  agriculture  produce    may exempt from levying of market fee.

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