Lok Sabha Question No. 1438 (UNSTARRED), answered on 2023-12-12
Subject: Remunerative Price
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: Ashok Mahadeorao Nete

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

## LOK SABHA UNSTARRED QUESTION NO. 1438

TO BE ANSWERED ON THE 12 TH  DECEMBER, 2023

## REMUNERATIVE PRICE

1438.     SHRI ASHOK MAHADEORAO NETE:

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

- (a)  whether  the  farmers  of  the  country  are  not  getting  remunerative  prices  for  their  crops including vegetables;
- (b) if so, the reaction of the Government in this regard; and
- (c) the details of the steps taken by the Government to ensure remunerative prices to the farmers for their crops and to protect them from middlemen and commission agents, till date?

## ANSWER

THE MINISTER OF AGRICULTURE AND FARMERS WELFARE कृ ͪष एवं ͩकसान कãयाण मंğी      ( SHRI ARJUN MUNDA) (a) to (c): Each year, Government fixes Minimum Support Prices (MSP) for 22 mandated agricultural crops, on the basis of the recommendations of the Commission for Agricultural Costs  and  Prices  (CACP),  after  considering  the  views  of  State  Governments  and  Central Ministries/Departments concerned. Moreover,  Government  in  its  Union  Budget  for  2018-19  had  announced  the  predetermined principle to keep MSP at levels of one and half times of the cost of production. Accordingly,  Government  has  increased  the  MSP  for  all  mandated  Kharif,  Rabi  and  other commercial crops with a margin of at least 50 per cent over all India weighted average cost of production from the agricultural year 2018-19 onwards. In order to realize the objectives of MSP Policy, Government extends price support for paddy and wheat through the Food Corporation of India (FCI) and State Agencies. Under this

policy  food  grainsoffered  by  farmers  within  the  stipulated  period  &  conforming  to  the specifications  prescribed  by  Government are  purchased at MSP by the State Government agencies and FCI for Central Pool. Additionally, Oilseeds, pulses and copra of Fair Average Quality  (FAQ)  are  procured  from  registered  farmers  under  Price  Support  Scheme  under Umbrella  Scheme  of  PM-AASHA,  as  per  its  guidelines,  at  MSP,  in  consultation  with  the concerned State Governments, when market prices of these products fall below the MSP. Cotton  and  Jute  are  also  procured  by  Government  at  MSP  through  Cotton  Corporation  of India (CCI) and Jute Corporation of India (JCI), respectively. Government's price policy is to ensure remunerative prices to farmers by offering to procure their produce at MSP. However, farmers are free to sell their produce to the Government procurement agencies at MSP or in the open market whichever is advantageous to them.

Besides,  for  crops  not  included  under  the MSP  regime,  such  as  agricultural/ horticultural commodities,which are perishable in nature,Government implements the Market Intervention  Scheme  (MIS).The  scheme  is  implemented  at  the  request  of  a  state  /  UT government  with  the  objective  to  protect  the  growers  of  these  commodities  from  making distress sale in the event of a bumper crop during the peak arrival period when the prices tend to fall below economic levels and cost of production.

In  addition,  Government  has  taken  several  steps  to  provide  remunerative  prices  to farmers for their produce which include followings: -

1. Implementing  National  Agriculture  Market  (e-NAM):  Government  is  implementing National  Agriculture  Market  (e-NAM)  scheme  wherein  online  trading  of  agricultural  and horticultural commodities is done for transparent price discovery for farmers for their produce through competitive online bidding system.
2. Promoting  Farmer  Producer  Organizations  (FPOs):  The  Government  of  India  has launched  the  Central  Sector  Scheme  for  'Formation  and  Promotion  of  10,000  Farmer Producer  Organizations  (FPOs)'  in  the  year  2020  with  a  total  budgetary  outlay  of ₹ 6865 crores which will enable farmers to enhance their bargaining power, leverage economies of scale, reduce cost of production and enhance farmers' incomes through aggregation of their agricultural produce.

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