Question : Remunerative Price to Farmers

(a) whether the farmers have received remunerative prices for their produce under the agricultural price policy keeping in view the high inflation during each of the last three years and the current year;

(b) if so, the details thereof, State-wise and if not, the reasons therefor;

(c) whether the Price Support Scheme (PSS) for procurement of oilseeds, pulses and cotton has been implemented across the country;

(d) if so, the details of procurement of farmers’ produce under the said scheme when the prices of the produce fell below the Minimum Support Price (MSP) during the said period; and

(e) the other corrective steps taken/ being taken by the Government to provide adequate price to farmers for their produce?

MINISTER OF AGRICULTURE AND FARMERS WELFARE
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(a) to (e): A statement is laid on the Table of the House.




STATEMENT REFERRED TO IN REPLY TO PARTS (a) TO (e) OF LOK SABHA STARRED QUESTION NO. 45 DUE FOR REPLY ON 25TH JUNE, 2019.

(a) & (b): Government announces Minimum Support Prices (MSPs) for 22 mandated crops and fair and remunerative price (FRP) for sugarcane on the basis of recommendations of the Commission for Agricultural Costs & Prices (CACP), after considering the views of State Governments and Central Ministries/Departments concerned and other relevant factors.
Region specific parameters are kept in view by the CACP while recommending MSP for agricultural crops. Since cost of production varies in different states on account of differences in levels of irrigation, resource endowment, farm mechanization, land holding size etc., CACP uses all-India weighted average cost of production while making its recommendations and recommends uniform MSP which is applicable to all states and not region or state-specific. This cost of production is all comprehensive cost as projected by the CACP after factoring inflation. The MSP so fixed provides atleast 50 % return over all India weighted average cost of production. The objective is to promote regionally differentiated production strategy and encourage an efficient state of agricultural production in the country.
Government’s price policy is to ensure remunerative prices to farmers by offering to procure their produce at MSP through the Price Support Scheme (PSS) and ensure MSP through Price Deficiency Payment scheme (PDPS). Procurement of pulses and oilseeds has been stepped up in recent years to assure remunerative prices to farmers.
(c) & (d): Government is implementing PSS under the umbrella scheme of ‘Pradhan Mantri Annadata Aay SanraksHan Abhiyan’ (PM-AASHA). This scheme is implemented at the request of the concerned State Government which agrees to
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exempt the procured commodities of pulses, oilseeds and copra from levy of mandi tax and assist central nodal agencies, in logistic arrangements, including gunny bags, working capital for state agencies, creation of revolving fund for PSS operations, etc. as required under the scheme guidelines. Procurement of these commodities are undertaken directly from pre-registered farmers within the stipulated period and conforming to the prescribed Fair Average Quality (FAQ) norms. These are carried out by Central Nodal Agencies through the State level agencies at MSP announced by the Government as and when prices fall below the MSP.

The state-wise detail of procurement of pulses and oilseeds at MSP under PSS and for cotton procured by Cotton Corporation of India (CCI) during the last three years and the current year is at Annex 1.

(e): Apart from increasing MSPs, Government has taken several steps to provide remunerative prices to farmers for their produce which include undertaking procurement through designated procurement agencies, implementing e-National Agriculture Market (e-NAM), enacting the Model Agricultural Produce and Livestock Marketing (Promotion & Facilitation) Act, 2017 and promoting Farmer Producer Organizations (FPOs).
The Government is working on market architecture so as to ensure that farmers get remunerative prices on their produce. These include setting up of Gramin Agricultural Markets (GrAMs) with a view to promote 22,000 number of retail markets in close proximity of farm gate; competitive and transparent wholesale trade at APMC through e-NAM; and a robust and pro-farmer export policy.
Interim Union Budget 2019 had announced a historic programme namely “Pradhan Mantri KIsan SAmman Nidhi (PM-KISAN)”. Under this programme,
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landholding farmer families will be provided direct income support at the rate of Rs. 6,000 per year. The PM-KISAN scheme aims to supplement the financial needs of the farmers in procuring various inputs to ensure proper crop health and appropriate yields, commensurate with the anticipated farm income at the end of the each crop cycle.