Question : Farmer’s Suicide

(a) whether cases of farmer’s suicide have increased in the country during each of the last three years and the current year and if so, the details thereof, State-wise;

(b) whether the farmers are being given 150 to 200 per cent of input costs of their agricultural produce as Minimum Support Price (MSP), if so, the details thereof along with the mechanism developed by the Government to address the issue of inflation while deciding the MSP;

(c) the corrective steps taken by the Government to provide appropriate MSP to farmers for their agricultural produce keeping in view high inflation and farmer’s suicide; and

(d) whether the Government has proposed any urgent steps to waive off crop loans from various banks including cooperative banks and if so, the details thereof?

Answer given by the minister

MINISTER OF AGRICULTURE AND FARMERS WELFARE

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(a): The National Crime Records Bureau (NCRB) under the Ministry of Home Affairs compiles and disseminates information on suicides in its publication titled ‘Accidental Deaths and Suicides in India’ (ADSI). These Reports on suicides are available upto 2015 on its website. The Report for the year 2016 onwards has not been published.

(b) & (c): Government fixed MSPs of 22 mandated Kharif and Rabi crops for every season and Fair & Remunerative Price (FRP) for sugarcane on the basis of recommendations of Commission for Agricultural Costs & Prices (CACP), after considering the views of State Governments and Central Ministries/Departments concerned & other relevant factors. In addition, MSP for Toria and De-Husked coconut is also fixed on the basis of MSPs of Rapeseed/Mustard and Copra respectively.

Contd…2/-

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While recommending MSPs, CACP considers important factors like cost of production, overall demand-supply conditions, domestic and international prices, inter-crop price parity, terms of trade between agricultural and non- agricultural sectors, the likely effect on the rest of the economy, besides ensuring rational utilization of productive resources like land and water and a minimum of 50 percent as the margin over cost of production.

The Union Budget for 2018-19 had announced the pre-determined principle to keep MSP at levels of one and half times the cost of production. Accordingly, Government has increased MSPs for all mandated crops with a return of at least 50 percent over all India weighted average cost of production for the season 2018-19. These MSP crops cover approximately 99 per cent of the total agricultural production in the country.

There exists a transparent and uniform policy for procurement by Government Agencies. Under this procurement policy, wheat and paddy offered by farmers within the stipulated period and conforming to the specifications (Fair Average Quality norms) prescribed in advance by Government of India (GOI), are purchased at Minimum Support Price (MSP) by the Government Agencies and Food Corporation of India (FCI) for Central Pool. Coarse grains are procured by State Governments as per the procurement plan prepared in consultation with FCI and approved by the Central Government for distribution under National Food Security (NFSA) and Other Welfare Schemes (OWS). However, farmers are free to sell their produce in the open market if they find the price and conditions favorable. The objective of food grains procurement by Government agencies is to ensure that farmers get remunerative prices for their produce and do not have to resort to distress sale. The progressive agri-market reforms, e-NAM and upgradation of 22,000 Gramin Agri-Market (GrAMs) are also aimed at ensuring remunerative returns to farmers.

(d): No proposal on waiver of crop loans at present is under consideration of the Central Government. However, the farmers affected due to severe natural calamities, an interest subvention of 2 percent per annum will be made available to the banks for first three years/ entire period (subject to a maximum of five years) on the restructured loan amount. Further, in all such cases, the benefit of prompt repayment incentive @ 3% per annum shall also be provided to the affected farmers. The grant of such benefits in cases of severe natural calamities shall, however, be decided by a High Level Committee (HLC) based on the recommendation of the Inter Ministerial Central Team (IMCT) and Sub Committee of National Executive Committee (SC-NEC).




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