Lok Sabha Question No. 3797 (UNSTARRED), answered on 2021-12-21
Subject: Fluctuation in Agricultural Prices
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: S.R. Parthiban

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

## LOK SABHA

## UNSTARRED QUESTION NO. 3797

TO BE ANSWERED ON THE 21 ST  DECEMBER, 2021

## FLUCTUATION IN AGRICULTURAL PRICES

## 3797. SHRI PARTHIBAN S.R.:

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

- (a) whether  the  Government  has  evolved  any  mechanism  to  assess  losses  to  farmers  on account of price fluctuations of agricultural produces; and
- (b) if so, the details thereof?

## ANSWER

## MINISTER OF AGRICULTURE AND FARMERS WELFARE

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

(a) & (b): The procurement of paddy and wheat at MSP is done through the Food Corporation of  India  (FCI)  and  State  Agencies.  Under this  policy,  food  grains offered by  farmers within  the stipulated period and 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  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).

Oilseeds,  Pulses  and  Copra  of  Fair  Average  Quality  (FAQ)  are  procured  from registered  farmers  under  Price  Support  Scheme  under  Umbrella  Scheme  of  Pradhan  Mantri Annadata  Aay  SanraksHan  Abhiyan  (PM-AASHA),  as  per  its  prescribed  guidelines  at  MSP  in consultation with the concerned State Government. 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 for MSP notified oilseeds crops in district / selected APMC(s) of district involving the participation of private agencies. Cotton and Jute are also procured by Government at MSP through Cotton Corporation of India (CCI) and Jute Corporation of India (JCI).

For  making  effective  procurement  by  government  agencies  at  MSP  and  providing maximum benefits of MSP to the farmers, procurement centres 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.  large  number  of  the  purchase  centres  in addition to the existing Mandis and depots / godowns are also established at key points for the convenience of farmers.

Under Market Intervention Scheme, on the request of concerned state/UT Govt, procurement of perishable agriculture and horticulture crops are done to protect the growers of these commodities in the event of a bumper crop during the peak arrival period. The condition is that there should be either at least a 10 percent increase in production or a 10 percent decrease in the ruling market prices over the previous normal year.

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