Lok Sabha Question No. 1254 (UNSTARRED), answered on 2021-07-27
Subject: Fair Price to Small Farmers
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: Ranjanben Dhananjay Bhatt

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

## LOK SABHA UNSTARRED QUESTION NO. 1254

TO BE ANSWERED ON THE 27 TH  JULY, 2021

## FAIR PRICE TO SMALL FARMERS

1254.  SHRIMATI RANJANBEN DHANANJAY BHATT:

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

- (a) whether  the  Government  seriously  proposes  to  provide  fair  price  to  small farmers for their crops and hard work;
- (b) if so, whether the Government has taken any steps in this regard;
- (c) if so, the details thereof; and
- (d) if not, the reasons therefor?

## ANSWER

MINISTER OF AGRICULTURE AND FARMERS WELFARE

कृ ष एवं कसान कल् याण मंी (SHRI NARENDRA SINGH TOMAR)

- (a) to (d): Under the present MSP operation mechanism, Government has various Schemes for price support to notified crops  in  order to  provide  fair  prices  to  the farmers including small farmers.

The procurement of paddy and wheat at MSP from farmers is done through the Food Corporation of India (FCI) and State Agencies. Further, different types of nutri-cereals and maize are procured at MSP from farmers 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 the umbrella Scheme of PM-AASHA, oilseeds, pulses and copra of Fair  Average  Quality  (FAQ)  are  procured  from  registered  farmers  at  MSP  in consultation  with  the  concerned  State  Government  and  as  per  Price  Support Scheme guidelines.  Further  under  PM-AASHA,  States  /  UTs  are  also  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.  States have  also 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  agencies  for  MSP  notified  oilseeds  crops. Under PSS, in order to provide maximum benefit of MSP to the small and marginal farmers,  per  day  limit  of  procurement  from  individual  farmers  has  also  been prescribed.

Cotton  and  Jute  are  procured  by  Government  at  MSP  through  Cotton

Corporation of India (CCI) and Jute Corporation of India (JCI) respectively.

All  the  payments  of  such  procured  crops  are  made  by  the  procuring agencies directly into farmers' accounts.

Moreover, if farmer gets favourable terms and better price in comparison to MSP, they are free to sell their produce anywhere.

Besides,  Government  also  extends  remunerative  prices  to  the  farmers through Market Intervention Scheme (MIS), on the request of concerned State/UT Govt  by  making  procurement  of  perishable  agriculture  and  horticulture  crops  for which MSP are not announced through designated agencies directly from farmers as prescribed in the Scheme Guideline.

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