Lok Sabha Question No. 2659 (UNSTARRED), answered on 2016-05-10
Subject: MSP for Agricultural Produce
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: B.V. NAYAK, RAVINDRA VISHWANATH GAIKWAD, MALLIKARJUN  KHARGE, BAIJAYANT "JAY" PANDA, SAUGATA ROY

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

## LOK  SABHA UNSTARRED QUESTION NO.2659

TO BE ANSWERED ON THE 10 TH   MAY, 2016

## MSP FOR AGRICULTURAL PRODUCE

2659.     SHRI B.V. NAIK:

PROF. RAVINDRA VISHWANATH GAIKWAD: SHRI MALLIKARJUN KHARGE: SHRI BAIJAYANT JAY PANDA: PROF. SAUGATA ROY:

Will the Minister of AGRICULTURE AND FARMERS WELFARE कृ षि एवं ककसान कल्याण मंत्री be pleased to state:

- (a) whether the majority of farmers particularly small and marginal farmers are not aware of Government schemes and policies including Minimum Support Price (MSP);
- (b) if so, the details thereof along with the reasons therefor;
- (c) whether  the  Government  has  conducted  any  survey  to  find  out  the  number  and percentage of farmers who have received the benefits of the Government's schemes including Minimum Support Price, if so, the details thereof along with the outcome thereof;
- (d) whether  the  Government  has  taken  cognizance  of  the  recent  NITI  Aayog  report  on Minimum Support Price if so, the details thereof;
- (e) whether  the Government proposes to frame guidelines for meaningful consultations with the State Governments on the methodology of computation of MSP, if so, the details thereof; and
- (f) the  steps  taken  by  the  Government  to  eliminate  the  role  of  middlemen  in  agricultural procurement and to provide remunerative prices to the farmers for their agricultural produce?

## ANSWER

## MINISTER OF STATE IN THE MINISTRY OF AGRICULTURE AND FARMERS WELFARE

कृ षि एवं ककसान कल्याण मंत्राऱय में राज्य मंत्री (SHRI MOHANBHAI KUNDARIYA)

(a) to (d): A study conducted by NITI Aayog on efficacy of Minimum Support Price (MSP) has found that 81% of farmers are aware of MSP fixed by the Government for different crops. The  study  also  found  that  MSP  declared  by  the  Government  has  encouraged  78%  of  the farmers  covered  under  the  study  for  adopting  improved  methods  of  farming  such  as  high yielding  varieties  of  seeds,  organic  manure,  chemical  fertilizer,  pesticides  and  improved methods of harvesting etc. due to remunerative price. The study has also revealed that majority of farm households are in favour of MSP since it ensures guaranteed income to the farmers by acting as a floor price.

Government has taken several initiatives to give wider publicity for Government Schemes and Policies including Minimum Support Price (MSP) through audio and visual media, dedicated television channels and use of Information Technology.

Data on the number and percentage of farmers who have received the benefits of the Government's schemes including Minimum Support Price are not readily available. However, 30.37%  of  the  total  production  of  105.48  million  tonnes  of  rice  and  32.38%  of  the  total production  of  86.53  million  tonnes  of  wheat  were  procured  at  MSP  in  2014-15.  Procurement under  MSP  is  undertaken  by  the  designated  central  and  state  government  agencies  and cooperatives. States are advised from time to time to ensure MSP to the farmers.

(e): While  formulating  the  recommendations  on  price  policy,  Commission  for  Agricultural Costs  &  Prices  (CACP)  holds  consultations  with  various  stakeholders  before  finalizing  its recommendations. Government fixes the MSPs of various crops based on the recommendations of the CACP, the views of State Governments, concerned Central Ministries /Departments and other relevant factors.

(f): Government offers to procure farmers' produce at MSP, however, they are free to sell it to Government agencies or in the open market as is advantageous to them. Government has initiated the Central Sector Scheme for promotion of National Agriculture Market through AgriTech Infrastructure Fund (A-ITF). The Scheme provides for a pan-India electronic trading portal which  seeks  to  network  the  existing  Agricultural  Produce  Marketing  Committee  (APMC)  and other market yards to create a unified national market for agricultural commodities. Further, to ensure  that  farmers  get  adequate  price  for  their  produce,  States/UTs  have  been  advised  to amend their respective State APMC Acts on the lines Model Act, 2003. The Model Act provides for  direct  marketing,  contract  farming,  farmers/consumers  markets,  setting  up  of  markets  in private and cooperative sectors etc.

Payment for procurement of wheat and paddy is either made directly to the farmers or through  arthias/co-operative  societies  through  A/c  payee  cheque/electronic  mode  as  per prevailing situation in the states.

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