Question : Remunerative Prices for Farm Produce

(a) whether it is a fact that there is a huge gap between production and procurement with the result that farmers have not been able to get remunerative prices for their produce, if so, the response of the Government thereto;

(b) whether the procuring agencies responsible for procuring foodgrains like rice and wheat have been able to procure only 26.77 per cent of wheat production and 31.30 per cent of rice production during financial years 2002-03 to 2017-18, if so, the facts thereof along with the reasons therefor;

(c) whether it is a fact that India has failed to solve the riddle of agricultural marketing, if so, the facts thereof;

(d) whether the Government has studied the reasons responsible for such a failure, if so, the details thereof; and

(e) the remedial steps taken by the Government to bridge the gap between production and procurement so far and the success achieved in this regard?

MINISTER OF STATE IN THE MINISTRY OF AGRICULTURE AND FARMERS WELFARE

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(a) & (b): There is always a gap between production and procurement of agricultural produce, since the entire quantity produced is not brought to Mandis / Purchase centres. Farmers retain a part of their produce for their self-consumption and seeds. The surplus is sold by them in the market. On an average, approximately 30-35% of the total rice and wheat produced in the country is procured for central pool by Government Agencies. The production and procurement of rice & wheat from 2002-03 to 2018-19 is at Annexure-I.

(c) & (d): Agricultural marketing is a State subject and Government of India plays a supportive role. The organized wholesale marketing of agricultural produce is promoted through
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the network of reregulated, wholesale markets established under the provisions of States’ Agricultural Produce Marketing (Regulation) Acts, popularly called Agricultural Produce Market Committee (APMC) Acts. Government has taken several measures to develop accessible marketing facilities for farmers nearer to the their farm gate with the objectives that farmers should get competitive and efficient markets with fair and transparent trading mechanism. The measures, inter alia, include steps like persuasion of States to reform their marketing laws/policies to provide better marketing facilities to the farmers by adopting the new model Act namely, “The Agricultural Produce and Livestock Marketing (Promotion & Facilitation) Act, 2017” in April 2017. The model act provides for alternative marketing channels such as setting up of private markets, direct marketing, farmer-consumer markets, special commodity markets, to facilitate farmers in marketing their produce at competitive & remunerative prices. Further, the Government has formulated and released a progressive and facilitative Model Act “The ----State/ UT Agricultural Produce & Livestock Contract Farming and Services (Promotion & Facilitation) Act, 2018” in May, 2018 for its adoption by the states/Union Territories (UTs) for promotion of contract farming. Government is also promoting adoption of e-National Agriculture Market (e-NAM) scheme for transparent price discovery for remunerative prices for the farmers for their produce through competitive online bidding system. In addition, in Union Budget 2018-19, Government has announced to develop and upgrade rural haats to Gramin Agriculture Market (GrAMs) through convergence of various scheme with a view to assist farmers to sale their produce direct to buyers and bulk consumers for realising better prices. Besides, Government of India has been promoting development of marketing infrastructure through various schemes such as Agricultural Marketing Infrastructure (AMI), Mission for Integrated Development of Horticulture (MIDH) & Rashtriya Krishi Vikas Yojana (RKVY).

(e): The Government of India along with various State Governments formulate procurement plan to procure notified agriculture produce from the farmers. The steps taken to ensure remunerative price to farmers are at Annexure-II.