Lok Sabha Question No. 1481 (UNSTARRED), answered on 2016-07-26
Subject: Linkage between Farmers and Industry
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: MAHEISH GIRRI, POONAM  MAHAJAN

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

## LOK  SABHA UNSTARRED QUESTION NO. 1481

TO BE ANSWERED ON THE 26 TH   JULY, 2016

## LINKAGE BETWEEN FARMERS AND INDUSTRY

## 1481.  SHRI MAHEISH GIRRI: SHRIMATI POONAM MAHAJAN:

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

- (a) whether the Government has identified that due to lack of linkages between farmers and industry  there  is  ineffective  and  economically  inefficient  supply  chain  and  if  so,  the  details thereof;
- (b) the steps taken by the Government to enhance farmer industry partnership;
- (c) whether the Government intends to provide funds to the farmer producer organisations or companies and local aggregators who are in direct contact with the farmers and to establish linkage between market and industry for effective and economically efficient supply chain in the country;
- (d) if so, the details thereof; and
- (e) if not, the reasons therefor along with the steps being taken to improve the supply chain so as to reduce the sky rocketing retail prices of pulses?

## ANSWER

MINISTER OF STATE IN THE MINISTRY OF AGRICULTURE AND FARMERS WELFARE

कृ ष एवं कसान कयाण मंालय म राय मंी ( SHRI PARSHOTTAM  RUPALA )

- (a) & (b): To  successfully  deal  with  a  range  of  challenges  that  confront  farmers  today, especially the constraints imposed by the small size of holdings of small and marginal farmers, member based Farmer Producer Organizations (FPOs) offer a proven pathway in overcoming these problems. FPO members are able to leverage collective strength and bargaining power to access  financial  and  non-financial  inputs  and  services  and  appropriate  technologies,  reduce transaction  costs,  tap  high  value  markets  and  enter  into  partnerships  with  private  entities  on more equitable terms. FPOs are promoted through various Central Sector Schemes operated in the States by the Government.

Further, in order to integrate the food processing industries with farmers, the Government  has  requested  the  States/Union  Territories  (UTs)  to  amend  their  marketing regulations to promote direct purchase of agricultural produce from farmers by processors at their  farm  gate.    On  consistence  pursuance  by  the  Government,  so  far  23  States/UTs  have amended  their  Agricultural  Produce  Market  Committee  (APMC)  Act  to  provide  the  direct purchase from farmers' at their farm gate.

Under Central  Sector  Scheme  of  Cold  Chain,  Value  Addition and  Preservation Infrastructure,  the  Government  is  providing  financial  assistance  in  the  form  of  grant-in-aid  of maximum  Rs.  10  Crore  per  project  for  setting  up  of  integrated  cold  chain  and  preservation infrastructure facilities  without  any  break  from the farm  gate to  the  consumer. The  integrated cold chain and preservation infrastructure can be set up by individuals, group of entrepreneurs, cooperative  societies,  Self  Help  Groups  (SHGs),  Farmer  Producer  Organizations  (FPOs), NGOs, Central/State PSUs, etc.

Further, The scheme of Mega Food Park aims to create modern infrastructure for food processing and to provide a mechanism to bring together farmers, processors and retailers and link agricultural production to the market so as to ensure maximizing value addition, minimizing wastages, increasing farmers' income and creating employment opportunities especially in rural areas. Government has sanctioned 42 Mega Food Parks for setting up in the Country.

(c ) & (d): The Government is providing funds to State Governments under several Central Sector Schemes like Rashtriya Krishi Vikas Yojana (RKVY), Mission for Integrated Development of Horticulture (MIDH) and National Food Security Mission (NFSM) with provision for  promotion  of  FPOs.    Since  2011-12,  694  FPOs  have  been  promoted  by  Small  Farmers Agribusiness  Consortium  (SFAC),  the  nodal  agency  identified  for  the  purpose.  Out  of  694 FPOs,  515  FPOs  have  already  been  registered.  State-wise  details  is  annexed.  A  large number of these FPOs after registration  have  been  engaged  in market  transactions  both for inputs and outputs. They are also successful in raising institutional credit for crop promotion, storage and processing operation.

(e): The Government has created a Price Stabilization Fund (PSF) with an initial corpus of Rs.  500  crore  during  year  2015-16  and  Rs.  900  crore  for  year  2016-17  to    support  market interventions  for  price  control  of  important  agri-commodities  like  onion,  potatoes  and  pulses. The intervention is expected to regulate price volatility through procurement by State Govt. and Central  agencies  of  selected  produce,  buffer  stock,  import  and  regulated  release  into  the market.

ANNEXURE State-wise Status of FPO promotion as on 20.07.2016

| S.No   |                   | No. of Farmers   | No. of Farmers      | No. of Farmers   | No. of FPOs   | No. of FPOs                        | No. of FPOs   |
|--------|-------------------|------------------|---------------------|------------------|---------------|------------------------------------|---------------|
| S.No   | State/Division    | Mobiliz ed       | Under Mobiliza tion | Total target     | Registe red   | Under the process of registratio n | Total         |
| 1      | Andhra Pradesh    | 1729             | 5271                | 7000             | 0             | 7                                  | 7             |
| 2      | Arunachal Pradesh | 1750             | 0                   | 1750             | 2             | 0                                  | 2             |
| 3      | Bihar             | 19065            | 0                   | 19065            | 19            | 0                                  | 19            |
| 4      | Chhattisgarh      | 15678            | 10322               | 26000            | 7             | 18                                 | 25            |
| 5      | Delhi             | 3535             | 0                   | 3535             | 4             | 0                                  | 4             |
| 6      | Goa               | 1810             | 0                   | 1810             | 2             | 0                                  | 2             |
| 7      | Gujarat           | 18919            | 1081                | 20000            | 17            | 4                                  | 21            |
| 8      | Haryana           | 12570            | 0                   | 11750            | 16            | 9                                  | 25            |
| 9      | Himachal Pradesh  | 4700             | 150                 | 4850             | 1             | 3                                  | 4             |
| 10     | Jammu Division    | 3694             | 287                 | 3981             | 1             | 2                                  | 3             |
| 11     | Srinagar Division | 3120             | 960                 | 4080             | 1             | 3                                  | 4             |
| 12     | Jharkhand         | 10009            | 0                   | 10009            | 8             | 0                                  | 8             |
| 13     | Karnataka         | 83904            | 596                 | 84500            | 65            | 17                                 | 82            |
| 14     | Madhya Pradesh    | 88401            | 56599               | 145000           | 99            | 45                                 | 144           |
| 15     | Maharashtra       | 75667            | 15833               | 91500            | 72            | 20                                 | 92            |
| 16     | Manipur           | 2650             | 4300                | 6950             | 2             | 5                                  | 7             |
| 17     | Meghalaya         | 2615             | 1135                | 3750             | 2             | 2                                  | 4             |
| 18     | Mizoram           | 1700             | 1000                | 2700             | 0             | 3                                  | 3             |
| 19     | Nagaland          | 1750             | 0                   | 1750             | 2             | 0                                  | 2             |
| 20     | Odisha            | 28121            | 10779               | 38900            | 20            | 22                                 | 42            |
| 21     | Punjab            | 6288             | 0                   | 6288             | 7             | 0                                  | 7             |
| 22     | Rajasthan         | 47079            | 3421                | 50500            | 36            | 4                                  | 40            |
| 23     | Sikkim            | 1876             | 0                   | 1876             | 2             | 0                                  | 2             |
| 24     | Tamil Nadu        | 10133            | 867                 | 11000            | 11            | 0                                  | 11            |
| 25     | Telangana         | 24539            | 0                   | 24539            | 15            | 5                                  | 20            |
| 26     | Tripura           | 2874             | 0                   | 2874             | 3             | 1                                  | 4             |
| 27     | Uttarakhand       | 6004             | 0                   | 6004             | 7             | 0                                  | 7             |
| 28     | Uttar Pradesh     | 33891            | 1109                | 35000            | 32            | 4                                  | 36            |
| 29     | West Bengal       | 60301            | 9199                | 69500            | 62            | 5                                  | 67            |
| Total  | Total             | 574372           | 122909              | 696461           | 515           | 179                                | 694           |

********