Lok Sabha Question No. 187 (STARRED), answered on 2022-03-15
Subject: Delay in Payment under PSS
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: Midhun Reddy, Pocha Brahmananda Reddy

## GOVERNMENT OF INDIA MINISTRY OF AGRICULTURE AND FARMERS WELFARE

## DEPARTMENT OF AGRICULTURE AND FARMERS WELFARE

## LOK SABHA STARRED QUESTION NO. 187

TO BE ANSWERED ON THE 15 TH  MARCH, 2022

## DELAY IN PAYMENT UNDER PSS

*187.  SHRI P.V. MIDHUN REDDY:

SHRI POCHA BRAHMANANDA REDDY:

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

- (a) the details of the total number of instances of delay in payment to farmers after receipt of  their  produce  under  the  Price  Support  Scheme  (PSS)  of  the  Government  for  the  year 2021-22;
- (b) whether the Government has taken any steps to ensure remunerative prices to small and marginal farmers and avoid distress sale for the year 2021-22, if so, the details thereof; and
- (c) whether  the  Government  was  able  to  maintain  the  target  of  fixing  the  difference  in average price between Minimum Support Price (MSP)/ procurement price and market prices for  each  item  covered  under  PSS  to  15-10%  of  the  MSP  for  the  year  2021-22,  if  so,  the details of the same?

## ANSWER

MINISTER OF AGRICULTURE AND FARMERS WELFARE

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

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

## STATEMENT  IN  RESPECT  OF  PARTS  (a)  TO  (c)  OF  THE  LOK  SABHA  STARRED QUESTION NO. 187 FOR 15 th  MARCH, 2022 REGARDING DELAY IN PAYMENT UNDER PSS.

- (a): The payments to farmers for procurement of their notified oilseeds, pulses and copra under  Price  Support  Scheme  (PSS)  are  made  directly  into  their  bank  accounts  by  the procuring agencies within three days from the receipt of their produce as per PSS guidelines.
- (b) & (c): Government of India announces Minimum Support Prices (MSP) for 22 major agricultural commodities of Fair Average Quality (FAQ) each year in both the Crop seasons after taking into account the recommendations of the Commission for Agricultural Costs and Prices (CACP). In addition, MSP for toria and de-husked coconut is also fixed on the basis of MSPs of rapeseed & mustard and copra respectively. Government also extends remunerative price to farmers through its various intervention schemes. Besides, the overall market  also  responds  to  declaration  of  MSP  and  Government's  procurement  operations which results in private procurement on or above the MSP for various notified crops.

Government extends price support for paddy and wheat through the Food Corporation of  India  (FCI)  and  State  Agencies.  Under  this  policy,  whatever  food  grains  are  offered  by farmers  within  the  stipulated  period  &  conforming  to  the  specifications  prescribed  by Government  are  purchased  at  Minimum  Support  Price  (MSP)  by  the  State  Government agencies  including  FCI  for  Central  Pool.  It  aims  to  service  the  National  Food  Security  Act (NFSA) and other welfare schemes of the Government so that subsidized food grains are supplied to the poor and needy, and to build up buffer stocks of food grains to ensure food grain security.

Further, different types of nutri-cereals and maize are procured by State Governments itself in consultation with FCI to the extent that the concerned State Government may utilise the same for distribution under Targeted Public Distribution System (TPDS) as well as Other Welfare Schemes (OWS).

Under  Price  Support  Scheme(PSS),  Oilseeds,  pulses  and  copra  of  Fair  Average Quality (FAQ) are procured from registered farmers, as per its prescribed guidelines at MSP in  consultation  with  the  concerned  State  Government  as  and  when  market  price  of  these produce fall below the MSP. Under PM-AASHA, States / UTs are offered to choose either Price  Support  Scheme  (PSS)  or  Price  Deficiency  Payment  Scheme  (PDPS)  in  a  given procurement  season  with  respect  to  particular  oilseeds  crop  for  the  entire  State.  Further, States have the option to roll out Private Procurement and Stockist Scheme (PPSS) on pilot basis in district / selected APMC(s) of district involving the participation of private stockist for oilseeds.

Cotton and Jute are also procured by Government at MSP through Cotton Corporation of India (CCI) and Jute Corporation of India (JCI) respectively. Moreover, if farmer gets better price in comparison to MSP, they are free to sell their produce in open market.

Further,  to  protect  the  growers  of  those  horticultural  /  agricultural  commodities  for which  Minimum  Support  Price  (MSP)  is  not  declared  and  which  are  perishable  in  nature, Government implements Market Intervention Scheme (MIS). The objective of intervention is to  protect  the  growers  from  making  distress  sale.  In  accordance  with  MIS  guidelines,  this scheme is implemented at the request of a State / UT. Government which is ready to bear 50 percent  of  the  loss  (25  percent  in  case  of  North-Eastern  States),  if  any,  incurred  on  its implementation.

For making effective procurement by government agencies, procurement centers are opened by respective State Government Agencies and Central Nodal Agencies like NAFED, FCI etc after taking into account the production, marketable surplus, convenience of farmers and availability of other logistics/ infrastructure such as storage and transportation etc.

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