Lok Sabha Question No. 357 (UNSTARRED), answered on 2016-07-19
Subject: Income of Farmers
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: RITI PATHAK

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

## LOK  SABHA

## UNSTARRED QUESTION NO. 357 TO BE ANSWERED ON THE 19 TH   JULY, 2016

## INCOME OF FARMERS

357. SHRIMATI RITI PATHAK:

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

- (a) whether  the  Government  has  made  any  announcement  to  ensure  a  certain amount of income of farmers by the year 2022;
- (b) if so, the details thereof and the measures taken/being taken by the Government for the purpose; and
- (c) the  efforts  to  be  made  by the  Government for increasing the Minimum Support Price of the crops at par with their cost of production?

## ANSWER

MINISTER  OF  STATE  IN  THE  MINISTRY  OF  AGRICULTURE  AND  FARMERS WELFARE

कृ ष एवं कसान कयाण मंालय म राय मंी (SHRI  SUDARSHAN BHAGAT)

- (a) & (b): During the presentation of Budget for 2016-17, Union Finance Minister has stated that "We are grateful to our farmers for being the backbone of the country's food security. We need to think beyond food security and give back to our farmers a sense of income  security.  Government  will,  therefore,  reorient  its  interventions  in  the  farm  and non-farm sectors to double the income of the farmers by 2022." To achieve the target of doubling  of  income  of  farmers  by  2022,  a  Committee  has  been  constituted  under  the Chairmanship  of  Additional  Secretary,  Department  of  Agriculture,  Cooperation  and Farmers Welfare for the following aspects:
- i) To study the current Income level of farmers/ agricultural labourers
- ii) To measure the historical growth rate of the current income level
- iii) To determine the needed growth rate to double the income of farmers/agricultural labourers by the year 2021-22
- iv) To consider and recommend  various strategies to be adopted to accomplish (iii) above
- v) To recommend  an institutional mechanism to review and monitor implementation to realise the goal
- vi) To examine any other related issue.

(c): Government fixes Minimum Support Prices (MSPs) of various crops on the recommendation of Commission for Agricultural Costs & Prices (CACP), views of the concerned State  Governments  and  Central  Ministries/Departments  and  other  relevant  factors.  While formulating  its  recommendations  on  price  policy,  CACP  considers,  inter-alia,  a  number  of factors including cost of production and changes in input prices. The cost of production, interalia,  includes all paid out costs including imputed value of family labour. The objective of the 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 as is advantageous to them.

Government has increased MSPs for all Kharif Crops including pulses & oil seeds for 2016-17  Season.  Further,  to  incentivize  cultivation  of  pulses  and  oil  seeds  in  the  country, Government has announced a bonus of Rs. 425/- per quintal for Kharif pulses, namely Arhar (Tur), Urad and Moong, a bonus of Rs. 200/- per quintal for Sesamum and a bonus of Rs. 100/per  quintal  for  other  Kharif  oilseeds  namely,  Groundnut-in-shell,  Sunflower  seed,  Soyabean, and Nigerseed over and above the MSPs. A statement of MSP of various crops for last five year is annexed.

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