Lok Sabha Question No. 2694 (UNSTARRED), answered on 2025-12-16
Subject: Protection of Farmers from Price Fluctuations
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: Dr. Amol Ramsing Kolhe, Smt. Supriya Sule

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

## LOK SABHA

## UNSTARRED QUESTION NO. 2694

TO BE ANSWERED ON THE 16 TH  DECEMBER, 2025

## PROTECTION OF FARMERS FROM PRICE FLUCTUATIONS

2694.  DR. AMOL RAMSING KOHLE: SMT. SUPRIYA SULE:

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

- (a) the specific measures being taken by the Government to ensure that farmers in Maharashtra, particularly those engaged in floriculture and vegetable cultivation, receive a fair Minimum Support Price (MSP) for their produce;
- (b) the details of the market intervention schemes implemented in the last three years to protect farmers from price fluctuations and post-harvest losses;
- (c) the financial assistance and subsidies provided to farmers for the establishment of cold storage facilities, pack houses, and agri-processing units in the Shirur, Pune Parliamentary constituencies; and
- (d) whether the Government is considering a new policy framework to promote direct  market  linkages between farmers and consumers and to reduce the role of intermediaries?

## ANSWER

## THE MINISTER OF STATE FOR AGRICULTURE AND FARMERS WELFARE कृ ͪष एवं ͩकसान कãयाण राÏय मंğी (SHRI RAMNATH THAKUR)

(a): To provide remunerative price to the farmers, Government implements Market Intervention Scheme (MIS), a component under PM-AASHA, across the country for procurement  of  agricultural  and  horticultural  commodities,  which  are  perishable  in nature and are not covered under the Minimum Support Price regime. The objective is to protect the farmers from distress sale in the event of a bumper crop during the peak  arrival,  when  the  prices  tend  to  fall  below  economic  levels  and  the  cost  of production. There should be at least a 10% decrease in the ruling market prices over the previous normal year. The scheme is implemented at the request of a State/UT government, which is ready to bear 50 % of the loss (25% in case of North-Eastern States), if any, incurred on its implementation. The maximum quantity of procurement is allowed upto 25% of estimated production of the state for particular crop and for particular season. Total amount of loss is shared on a 50:50 basis between the Central Government and the State Government (75:25 for North East States) restricted upto 25 % of the total procurement value, including cost of the commodity procured and permitted overhead expenses.

New components of Price Differential Payment (PDP) with an option to make direct payment of the price difference between the Market Intervention Price (MIP) and the selling price to the farmers for the crops traded in the APMC mandis has been added. Additionally,  reimbursement for transportation and storage cost of TOP crops (Tomato, Onion and Potato) to central nodal agencies & State designated agencies for storing and transporting them from producing state to consuming state are allowed.

(b): During the years 2022-23, 2023-24, 2024-25 and 2025-26,  1,00,126 MT of C grade  apple,  grapes  and  ginger  has  been  procured  and  implemented  under  MIS. During  2024-25,  transportation  of  Tomatoes  under  MIS  has  been  implemented  in Madhya Pradesh,Chhatisgarh and Odisha. During 2025-26 , MIS for price deficiency payment has been implemented for 2,50,000 MT of Mango in Karnataka.

(c): The Agriculture Infrastructure Fund (AIF) was launched in 2020-21 to address gaps in post-harvest management and strengthen agricultural infrastructure. Banks and financial institutions extend loans worth ₹ 1 lakh crore, with 3% per annum interest subvention from AIF. Under AIF as on 25th November, 2025, 338 no. of projects have been  sanctioned  to  farmers  with  the  sanctioned  amount  of  ₹  233  crore    in Pune(including Shirur) district.

(d): Agriculture  marketing  is  a  state  subject.  To  promote  direct  market  linkages between farmers and consumers, Government is implementing digital platform like eNAM for wholesale trade and promoting Farmers Producer Organization (FPO) to  sell directly to retail consumer via e commerce like Open Network for Digital Commerce (ONDC), GeM etc.

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