Remunerative Prices to Farmers for Horticulture Crops

The production of horticulture crops like vegetables and flowers have increased in recent years in the country

(Production in ‘000 Tonnes)

 

The details of production of Potato, Tomato and Onion  during the last three years is  as under:-

 

Government implements the Market Intervention Scheme (MIS) for procurement of agricultural and horticultural commodities which are perishable in nature and are not covered under the Price Support Scheme (PSS). The objective of intervention is to protect the growers of these commodities from making distress sale in the event of a bumper crop during the peak arrival period when the prices tend to fall below economic levels and cost of production. The condition is that there should be either at least a 10 percent increase in production or a 10 percent decrease in the ruling market prices over the previous normal year. The scheme is implemented at the request of a State/UT government which is ready to bear 50 percent of the loss (25 percent in case of North-Eastern States), if any, incurred on its implementation. The extent of total amount of loss to be shared on a 50:50 basis between the Central Government and the State Government is restricted to 25 percent of the total procurement value which includes cost of the commodity procured plus permitted overhead expenses. Under the scheme, in accordance with MIS guidelines, a pre-determined quantity at the fixed Market Intervention Price (MIP) is procured by the agencies designated by the State Government for a fixed period or till the prices are stabilized above the MIP whichever is earlier.

In order to provide farmers remunerative prices for their produce, the Government has taken several steps.

The Government has implemented National Agriculture Market (e-NAM) scheme an online virtual trading platform to provide farmers and Farmer Producer Organizations (FPOs) with opportunity for transparent price discovery for remunerative prices for their produce through competitive online bidding system.

Through Agriculture Marketing Infrastructure (AMI) Scheme development of private mandis, direct marketing, declaring  warehouses, silos, cold storages as deemed markets and also developing GraminHaats into Gramin Agricultural Markets (GrAMs), are promoted.

The Government is now implementing a central Sector scheme namely “Formation and Promotion of 10,000 Farmer Producer Organizations (FPOs)” to enhance cost effective production and higher net incomes to the member farmer producers through better liquidity and market linkages for their produce and become sustainable through collective action.

In addition to above, to provide additional channels to farmers for marketing of their produce and promote barrier-free inter-state and intra-state trade and commerce, the Government has promulgated “The Farmers’ Produce Trade and Commerce (Promotion and Facilitation) Ordinance, 2020” on 5th June, 2020. Now, farmers can sell their produce from their farm-gate, residence to processing units, warehouse, silos, cold storage etc. nearer to their farm-gate. Farmers are getting better price, and also be able to save the transportation cost, unofficial payment of market fee, commission charges and other marketing charges in the existing system of agricultural marketing.

This information was given in a written reply by the Union Minister of Agriculture and Farmers Welfare Shri Narendra Singh Tomar in Rajya Sabha today.