Lok Sabha Question No. 2922 (UNSTARRED), answered on 2018-03-13
Subject: Price for Agricultural Produce
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: SRIRAM MALYADRI, PANKAJ CHOWDHARY

## GOVERNMENT OF INDIA MINISTRY OF AGRICULTURE AND FARMERS WELFARE DEPARTMENT OF AGRICULTURE, COOPERATION AND FARMERS WELFARE

## LOK  SABHA UNSTARRED QUESTION NO.2922

TO BE ANSWERED ON THE  13 TH  MARCH, 2018

## PRICE FOR AGRICULTURAL PRODUCE

2922.  SHRI MALYADRI SRIRAM:

SHRI PANKAJ CHAUDHARY:

Will  the  Minister  of  AGRICULTURE  AND  FARMERS  WELFARE      ‡ãðŠãäÓã एवं  कसान कयाण ½ãâ¨ããè be pleased to state:

- (a) whether  Indian  farmers  are  getting  maximum  prices  for  their  produce  despite excessive import of agriculture/food products and if so, the details thereof;
- (b) whether there is any  scheme to provide incentive to the farmers  for producing good quality crops in abundance in order to promote export of rice, spices, vegetables, fruits produced in the country; and
- (c) if so, the details thereof?

## ANSWER

MINISTER OF  STATE IN THE  MINISTRY OF  AGRICULTURE AND  FARMERS  WELFARE

‡ãðŠãäÓã एवं कसान कयाण ½ãâ¨ããÊã¾ã ½ãñâ Àã·¾ã ½ãâ¨ããè ( SHRI GAJENDRA SINGH SHEKHAWAT)

- (a): The  prices  of  agricultural  produce  are  determined  by  supply  and  demand conditions in the market on a day to day basis. The prices of Agricultural produce tend to fall after the harvest season due to increase in market arrival of new crop in a lumpy manner.  Government  fixes  Minimum  Support  Prices  (MSPs)  to  protect  farmers  from distress  sale.  Government  has  increased  the  MSPs  for  both  Kharif  &  Rabi  crops  for 2017-18 seasons on the basis of the recommendations of Commission for Agricultural Costs and Prices (CACP). The MSPs fixed by the Government provide adequate returns over  weighted  average cost  of  production  (A2+FL) as  estimated  by  the  CACP. While formulating  its  recommendations  on  price  policy,  CACP  considers  cost  of  production, trends  in  market  prices,  demand  and  supply  situation,  effect  on  general  price  level, effect on cost of living etc.

The Union Budget for 2018-19 has announced the pre-determined principle to keep MSP at levels of one and half times the cost of production for Kharif crops also as already implemented for Rabi crops in October 2017. The MSPs and all India average monthly wholesale prices of major agricultural commodities are given at Annexure.

As a proportion of overall agricultural production, imports of agricultural produce is not significantly high or excessive. However, as there was an observed shortfall over demand in pulses prior to 2016-17 and this was leading to sharp uptick in prices, tariffs were  lowered  and  imports  of  6.61  million  tonnes  in  2016-17  and  5.33  million  tonnes were  there.  However,  as  the  availability  position  in  pulses  improved  considerably  in 2016-17 and 2017-18, imports duties were revised and other measures taken in 201718 to modulate the levels of imports of pulses. Exports of pulses were made free without any quantitative restrictions.

(b) & (c): To  offset  freight  cost  and  make  Indian  exports  more  competitive  in international markets, Government is providing rewards ranging from 4% to 7% under Merchandise Exports from India Scheme (MEIS) on export of spices, vegetables and fruits.

Annexure referred to in reply to part (a) of Lok Sabha Unstarred Question No. 2922 due for answer on 13.03.2018

## MSP and Monthly All India Average Wholesale Prices of Major Agricultural Commodities from January 2017 to December 2017

*********

## ANNEXURE

## Rs/Quintal

|                        | 2017-18   | 2017   | 2017   | 2017   | 2017   | 2017   | 2017   | 2017   | 2017   | 2017   | 2017   | 2017   | 2017   |
|------------------------|-----------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
| Commodities            | MSP       | JAN    | FEB    | MAR    | APR    | MAY    | JUN    | JUL    | AUG    | SEP    | OCT    | NOV    | DEC    |
| Paddy (Common)         | 1550      | 1647   | 1673   | 1682   | 1653   | 1646   | 1694   | 1715   | 1721   | 1725   | 1718   | 1737   | 1716   |
| Rice                   | -         | 3253   | 3342   | 3361   | 3345   | 3363   | 3362   | 3392   | 3348   | 3380   | 3409   | 3354   | 3340   |
| Bajra                  | 1425      | 1712   | 1688   | 1696   | 1715   | 1686   | 1614   | 1661   | 1638   | 1521   | 1504   | 1492   | 1472   |
| Gram                   | 4400@     | 7695   | 6552   | 6119   | 6154   | 6131   | 5818   | 5792   | 5978   | 6130   | 5861   | 5666   | 5317   |
| Jowar                  | 1700      | 2186   | 2210   | 2184   | 2152   | 2182   | 2211   | 2225   | 2262   | 2070   | 2038   | 2051   | 2188   |
| Maize                  | 1425      | 1581   | 1605   | 1575   | 1592   | 1628   | 1614   | 1558   | 1587   | 1507   | 1472   | 1461   | 1473   |
| Wheat                  | 1735      | 2112   | 2047   | 1952   | 1946   | 1923   | 1923   | 1920   | 1895   | 1897   | 1901   | 1912   | 1924   |
| Arhar Whole            | 5450*     | 5240   | 4891   | 4927   | 4766   | 4452   | 4270   | 4182   | 4510   | 4354   | 4283   | 4266   | 4357   |
| Masur Whole            | 4250**    | 5613   | 5233   | 5309   | 5080   | 4940   | 4668   | 4443   | 4593   | 4540   | 4400   | 4361   | 4273   |
| Moong Whole            | 5575*     | 5558   | 5475   | 5534   | 5517   | 5426   | 5132   | 4976   | 5230   | 5137   | 5145   | 5153   | 5329   |
| Urad Whole             | 5400*     | 7690   | 6921   | 6795   | 6620   | 6576   | 6252   | 5999   | 6228   | 5889   | 5599   | 5442   | 5396   |
| Groundnut              | 4450*     | 4995   | 4945   | 5286   | 5304   | 5228   | 4731   | 4754   | 4610   | 4311   | 4237   | 4391   | 4367   |
| Mustard Seed           | 4000**    | 4240   | 4057   | 3896   | 3943   | 3932   | 3870   | 3942   | 3992   | 3977   | 3993   | 4024   | 4106   |
| Soyabean               | 3050*     | 2929   | 2868   | 2877   | 2898   | 2905   | 2925   | 2987   | 2961   | 2910   | 2888   | 2976   | 3079   |
| Sunflower Seed         | 4100**    | 3248   | 3124   | 3013   | 2967   | 2964   | 2905   | 2845   | 2877   | 2871   | 2854   | 2949   | 2881   |
| Cotton (Medium Staple) | 4020      | 5489   | 5383   | 5362   | 5072   | 4805   | 4498   | 4834   | 4955   | 4406   | 4390   | 4530   | 4975   |
| Jute Raw               | 3500      | 4094   | 4117   | 3794   | 3576   | 3506   | 3528   | 3298   | 3414   | 3423   | 3414   | 3321   | 3265   |
| Potato                 | -         | 730    | 692    | 674    | 771    | 843    | 872    | 958    | 918    | 865    | 977    | 905    | 834    |
| Onion                  | -         | 1191   | 1284   | 1320   | 1478   | 1682   | 2089   | 1846   | 2825   | 2478   | 3303   | 4360   | 3581   |
| Tomato                 | -         | 1032   | 1137   | 1254   | 895    | 970    | 2943   | 5576   | 3866   | 1822   | 3244   | 3686   | 1349   |