Lok Sabha Question No. 1495 (UNSTARRED), answered on 2016-05-03
Subject: Fixation of Prices for Agricultural Produce
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: SUSHMITA DEV

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

## LOK  SABHA UNSTARRED QUESTION NO.1495

TO BE ANSWERED ON THE 3 RD  MAY, 2016

## FIXATION OF PRICES FOR AGRICULTURAL PRODUCE

1495.      KUMARI SUSHMITA DEV:

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

- (a) whether some Government reports have suggested an overhaul of the mechanism to fix grain  prices  to  make  it  'realistic'  for  farmers  at  a  time  when  agriculture  income  growth  has slumped to its lowest in the recent years;
- (b) if so, the recommendations of the said Government reports in this regard;
- (c) whether the Union Government proposes to take further concrete action on the basis of those Government reports to protect the farmers from droughts and unseasonal rains; and
- (d) if so, the details thereof ?

## 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): Methodology for estimating the cost of production is reviewed from time to time. A committee constituted by the Government under the chairmanship of Director, National Centre for Agricultural Economics and Policy (NCAP), to examine the methodological issues in fixing Minimum  Support  Prices  has  submitted  its  Report.  The  major  recommendation  of  the committee,  inter  alia,  includes  modification  of  the  existing  sampling  design,  increase  of  the sample size, modification in the classification of operational holding, etc.  The recommendations of the committee are under consideration of the Government.

A study conducted by NITI Aayog on efficacy of MSP has 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.  Majority  of  farmers  are  aware  of  MSP  fixed  by  the  Government.  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  MSP.  States  have been advised from time to time to ensure MSP to the farmers.

In  order  to  protect  farmers  against  crop  failure  due  to  natural  calamities,  pests  & diseases,  weather  conditions,  Central  Government  has  introduced  the  Pradhan  Mantri  Fasal Bima Yojana (PMFBY).

Pradhan Mantri Krishi Sinchai Yojana (PMKSY) has been launched with the objective of extending  the  coverage  of  irrigation  in  a  focused  manner  to  reduce  impact  of  erratic  rainfall. Under PMKSY focus has been given for creation of new water sources, repair, restoration and renovation of defunct water sources, construction of water harvesting structures, secondary & micro storage, ground water development and enhancing potential of traditional water bodies at village level.

State  Government  is  primarily  responsible  for  taking  necessary  relief  measures  in  the wake of natural calamities. Central Government supplements efforts of State Government with financial assistance and logistic support. For undertaking relief measures, funds are available with the state Government in the form of State Disaster Response Fund (SDRF).

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