MINISTER OF STATE IN THE MINISTRY OF AGRICULTURE AND FOOD PROCESSING
INDUSTRIES (DR. CHARAN DAS MAHANT)
(a) & (b): The annual average of the Index Numbers of Wholesale Prices (Base
2004-05=100) for fertilizers, electricity, organic manure during the period 2010-11 to
2012-13 (July to June) reveal that prices have increased by 10 per cent for fertilizers,
34 per cent for electricity for Agriculture use and 18 per cent for organic manure.
WPI for the period 2013-14 (July to December) also shows further increase for these
farm inputs.
(c) & (d): To facilitate better price realization by the farmers, reduced
intermediaries and avoid exploitation by them, a model Agricultural Produce
Marketing (Development and Regulation) Act, 2003 was circulated for its adoption by
State/UTs. The model Act provides for direct purchase of agricultural produce from
farmers by processors/exporters/bulk buyers etc., direct sale of produce by the
farmers to consumers, contract farming, e-marketing etc. so as to reduce the role of
intermediaries. Model Act also provides for rationalization of market fee, no
commission charges from agriculturist and payment to the farmers on the date of
sale itself.
(e): The Government announces the MSP of various agricultural commodities on
the basis of recommendations of Commission for Agricultural Cost and Prices
(CACP), the view of the State Governments and Central Ministries as well as such
other relevant factors considered important for fixation of support price. The
government announces each seasons Minimum Support Prices (MSPs) for major
agricultural commodities and organizes purchase operation through public and
cooperation agencies. The designated Central Nodal Agencies intervene in the
market for undertaking procurement operations with the objective that market prices
do not fall below the MSPs fixed by the government.
