Lok Sabha Question No. 2431 (UNSTARRED), answered on 2024-12-10
Subject: Farmers' share in Consumer Rupee
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: Shri Durai Vaiko

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

## LOK SABHA UNSTARRED QUESTION NO. 2431

TO BE ANSWERED ON THE 10 TH     DECEMBER, 2024

## FARMERS' SHARE IN CONSUMER RUPEE

## 2431.  SHRI DURAI VAIKO:

Will the Minister of AGRICULTURE AND FARMERS WELFARE कृ ͪष और ͩकसान कãयाण मंğी be pleased to state:

- (a)  whether the Government is aware of recent RBI working papers that show the farmers' share in the consumer rupee low for fruits and vegetables; and
- (b)  if so, the steps planned to be taken by the Government to increase the farmers' share?

## ANSWER

## THE MINISTER OF STATE FOR AGRICULTURE AND FARMERS WELFARE

कृ ͪष एवं ͩकसान कãयाण राÏय मंğी (SHRI RAMNATH THAKUR)

(a) & (b): The Reserve Bank of India (RBI)'s Working Paper titled 'Vegetables Inflation in India: A Study of Tomato, Onion and Potato (TOP)' estimates farmers' share in the consumer rupee to be about 33% for tomatoes, 36% for onions and 37% for potatoes. In another RBI's Working Paper 'Price Dynamics and Value Chain of Fruits in India', the farmers' share in the consumer rupee is estimated at around 31 % for bananas, 35% for grapes and 43% for mangoes in the domestic value chain. The factors such as number of marketing channels, higher marketing cost and margins, and high perishability affects the price realisation by the farmers.

Together with enhancing production and productivity, Government's priority has been to take various measures to improve marketing of agricultural produce and reduce post-harvest losses to ensure remunerative prices for farmers' produce. Though, it is a State subject, yet Government  promotes  development  of  farmers'  accessible  competitive  markets  like  direct marketing,  private  markets,  etc.,  through reforms, in  State  government'  marketing  Laws  and policies.

Government in 2016 launched a National Agriculture Market (e-NAM) to enable the farmers to  transparently  sell  their  produce  to  large  number  of  buyers  accessing  multiple  markets electronically. In addition, to address the marketing challenges of farmers, specially of small and marginal ones, Government took measure in 2020 by launching a market linkage approached based Formation and Promotion of 10000 Farmers Producer Organisations (FPOs) scheme.

Government is also implementing a Central Sector Scheme, Agriculture Infrastructure Fund (AIF) of Rs. 1,00,000 Crore to provide a medium-long term loan facility for investment in viable projects  for  post-harvest  market  infrastructure  including  warehousing  facility  and  community farming  assets  through  interest  subvention  and  financial  support.  Apart  from  above,  the Government  is  implementing  Agricultural  Marketing  Infrastructure  (AMI),  a  sub-scheme  of Integrated  Scheme for  Agricultural  Marketing (ISAM)  under  which  assistance  is  provided  for construction of godowns/ warehouses in the rural areas in the States to enhance the storage capacity for agriculture produce. Under the scheme, Government provides subsidy at the rate of 25% and 33.33% on capital cost of the project based on the category of eligible beneficiary.

Under  Operations  Greens,  Government  provides  financial  assistance  with  objective  of enhancing value realization of produce of farmers, increase in food processing and reduction in postharvest  losses.  Under  the  Long  Term  Interventions  of  the  Operations  Greens  Scheme, Government provides financial assistance @35% of eligible project cost for projects in General Areas and @ 50% of eligible project cost for projects in difficult areas as well as for projects of SC/ST, FPOs and SHGs with maximum grants-in-aid of Rs. 15 crore per project under Integrated Value Chain Development Projects and that of Rs. 10 crore per project under Standalone Post Harvest Infrastructure Projects.

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