Lok Sabha Question No. 1564 (UNSTARRED), answered on 2016-05-03
Subject: MSP for Potato and Onion
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: DILIP PATEL

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

## LOK  SABHA UNSTARRED QUESTION NO.1564

TO BE ANSWERED ON THE  3 RD  MAY, 2016

## MSP FOR POTATO AND ONION

## 1564.     SHRI DILIP PATEL:

Will the Minister of AGRICULTURE AND FARMERS WELFARE ‡ãðŠãäÓã एवं किसान िल्याण ½ãâ¨ããè be pleased to state:

- (a) whether  the  Government  is  aware  that  farmers  are  compelled  to  sell  their produce at prices below the production cost thereby incurring huge losses,  if  so,  the details thereof;
- (b) whether the Government is considering to bring agriculture produce system like potato  and  onion  under  the  Minimum  Support  Price  (MSP)  to  provide  remunerative prices to the farmers;
- (c) if so, the details thereof; and
- (d) the other corrective steps taken by the Government in this regard?

## ANSWER

MINISTER OF  STATE IN THE  MINISTRY OF  AGRICULTURE AND  FARMERS  WELFARE

‡ãðŠãäÓã एवं किसान िल्याण ½ãâ¨ããÊã¾ã ½ãñâ Àã·¾ã ½ãâ¨ããè ( SHRI MOHANBHAI KUNDARIYA )

- (a): As per the latest data available for cost of production, a comparison of the cost of production and the average wholesale price of onion and potato in the major producing states is given at Annexure.
- (b) to (d): Government  provides  Minimum  Support  Price  for  major  food  grains required for national food security and for important commercial crops. There is no MSP for  potato  and  onion.    However,  the  Department  of  Agriculture  &  Cooperation  and Farmers Welfare is implementing the Market Intervention Scheme (MIS) for procurement of agricultural and horticultural commodities, which are generally perishable  in  nature.  The  basic  objective  of  MIS  is  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. The  MIS  is implemented  on  the  specific request  of  the  State  Government/UT Administration willing to share loss with the Central Government on 50:50 basis (75:25 in case of North Eastern States). In addition, States/ UTs have been advised to amend their  respective  State  APMC  Acts  on  the  line  of  Model  Act,  2003.  Recently,  a  pilot project on e-trading platform for the National Agricultural Market has been launched in 21 mandis from 8 states.

Annexure Annexure referred to in part (a) of  Lok Sabha Unstarred Question No 1564 due for 03.05.2016

Comparative Position of Onion in Major Producing States for the Year 2013-14

(Rs. Per Quintal)

|   Sl. No. | State          |   Cost of Production |   Wholesale Price (Average) |
|-----------|----------------|----------------------|-----------------------------|
|         1 | Andhra Pradesh |              1629.75 |                     2233.33 |
|         2 | Gujarat        |               662.1  |                     1936.83 |
|         3 | Karnataka      |               973.3  |                     1712.02 |
|         4 | Maharashtra    |               756.94 |                     2016.15 |

Comparative Position of Potato in Major Producing States for the Year 2013-14

(Rs. Per Quintal)

|   Sl. No. | State            |   Cost of Production |   Wholesale Price (Average) |
|-----------|------------------|----------------------|-----------------------------|
|         1 | Bihar            |               515.32 |                     1001.25 |
|         2 | Himachal Pradesh |               907.01 |                     1316.67 |
|         3 | Uttar Pradesh    |               707.48 |                      910.41 |
|         4 | West Bengal      |               738.06 |                     1135.56 |

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