Lok Sabha Question No. 366 (STARRED), answered on 2017-03-28
Subject: Functioning of CACP
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: (ADV.) JOICE GEORGE

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

## LOK  SABHA

## STARRED QUESTION NO. 366

TO BE ANSWERED ON THE 28 TH  MARCH, 2017

## FUNCTIONING OF CACP

- *366.    ADV. JOICE GEORGE:

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

- (a) whether the Government has assessed the performance of the Commission for Agricultural Costs and Prices (CACP), against the mandate assigned to it and if so, the details thereof;
- (b) whether the horticulture produces including vegetables, fruits and dairy products come under the ambit of CACP's price determination and if so, the details thereof;
- (c) if not, whether the Government proposes to include these produces under CACP and if so, the details thereof;
- (d) the  details  of  the  crops  for  which  CACP  recommended  fixation  of  Minimum Support Price in the recent past; and
- (e) the steps taken by the Government to strengthen the functioning of CACP?

## ANSWER

## MINISTER OF AGRICULTURE AND FARMERS WELFARE

- कृ ष एवं कसान कयाण ½ãâ¨ããè (SHRI RADHA MOHAN SINGH) (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. 366   DUE FOR REPLY ON 28 TH  MARCH, 2017.

- (a):    Commission for Agricultural Costs and Prices (CACP) is an attached office in the Ministry of Agriculture and Farmers Welfare. The CACP functions as per the mandate given  by  the  Government.  No  separate  assessment  of  CACP  against  the  mandate assigned to it has been made. The Terms of Reference of CACP have been revised from time to time. The Government has constituted Expert Committees as required to examine methodological issues with respect to various aspects of fixation of Minimum Support  Prices  (MSPs),  other  policies  affecting  farmers  and  prices  of  farm  produce. Besides, the coverage of commodities has also been revised.
- (b) & (c): Government fixes Minimum Support Prices (MSPs) of agricultural produce which generally have fairly long shelf life and are necessary for food/nutrition security. For  agricultural  and  horticultural  commodities  which  are  not  covered  under  the  MSP, Government implements Market Intervention Scheme (MIS). The MIS is implemented in order  to  protect  the  growers  of  these  commodities  from  making  distress  sale  in  the event  of  bumper  crop  when  the  prices  tend  to  fall  below  the  economic  level/cost  of production. Losses, if any, incurred by the procuring agencies are shared by the Central Government  and  the  concerned  State  Government  on  50:50  basis  (75:25  in  case  of North-Eastern States).

## (d): Details of crops for which Government fixes MSPs are as under:

| Cereals   | Pulses     | Oilseeds         | Commercial Crops   |
|-----------|------------|------------------|--------------------|
| Paddy     | Arhar(Tur) | Groundnut        | Cotton             |
| Wheat     | Moong      | Rapeseed/Mustard | Jute               |
| Maize     | Urad       | Soyabean         | Copra              |
| Jower     | Gram       | Sesamum          | Sugarcane          |
| Bajra     | Masur      | Sunflower seed   |                    |
| Ragi      |            | Safflower        |                    |
| Barley    |            | Nigerseed        |                    |

The MSP recommended by CACP and fixed by the Government for 2016-17 are given at Annexure.

(e): CACP is an  Expert  body  which  comprises  of  a  Chairman,  Member  Secretary, one Member (Official) and two Members (Non-Official). The non-official members are representatives  of  the  farming  community.  There  is  no  proposal  to  strengthen  the functioning of CACP.

## Annexure

Annexure referred to in reply to part (d) of Lok Sabha Starred Question No. 366 due for reply on 28.03.2017.

## Minimum Support Prices for 2016-17

(Rs. per quintal)

| Sl. No.   | Commodity          | Variety       | Recommended by CACP   | Fixed by Government   |
|-----------|--------------------|---------------|-----------------------|-----------------------|
|           | KHARIF CROPS       |               |                       |                       |
| 1         | PADDY              | Common        | 1470                  | 1470                  |
|           |                    | Grade 'A'     | 1510                  | 1510                  |
| 2         | JOWAR              | Hybrid        | 1625                  | 1625                  |
|           |                    | Maldandi      | 1650                  | 1650                  |
| 3         | BAJRA              |               | 1330                  | 1330                  |
| 4         | MAIZE              |               | 1365                  | 1365                  |
| 5         | RAGI               |               | 1725                  | 1725                  |
| 6         | ARHAR(Tur)         |               | 4625                  | 5050^^                |
| 7         | MOONG              |               | 4800                  | 5225^^                |
| 8         | URAD               |               | 4575                  | 5000^^                |
| 9         | COTTON             | Medium Staple | 3860                  | 3860                  |
|           |                    | Long Staple   | 4160                  | 4160                  |
| 10        | GROUNDNUT IN SHELL |               | 4120                  | 4220*                 |
| 11        | SUNFLOWER SEED     |               | 3850                  | 3950*                 |
| 12        | SOYABEEN           |               | 2675                  | 2775*                 |
| 13        | SESAMUM            |               | 4800                  | 5000^                 |
| 14        | NIGERSEED          |               | 3725                  | 3825*                 |
|           | RABI CROPS         |               |                       |                       |
| 15        | WHEAT              |               | 1625                  | 1625                  |
| 16        | BARLEY             |               | 1325                  | 1325                  |
| 17        | GRAM               |               | 3800                  | 4000^                 |
| 18        | MASUR (LENTIL)     |               | 3800                  | 3950!                 |
| 19        | RAPESEED/ MUSTARD  |               | 3600                  | 3700*                 |
| 20        | SAFFLOWER          |               | 3600                  | 3700*                 |
|           | OTHER CROPS        |               |                       |                       |
| 21        | COPRA              | Milling       | 5950                  | 5950                  |
|           | (Calender Year)    | Ball          | 6240                  | 6240                  |
| 22        | JUTE               |               | 3200                  | 3200                  |
| 23        | SUGARCANE$         |               | 230.00                | 230.00                |

- $ Fair and remunerative Price
* Including Bonus of Rs. 100 per quintal.
- ^ Including Bonus of Rs. 200 per quintal.
- ^^ Including Bonus of Rs. 425 per quintal.
- ! Including Bonus of Rs. 150 per quintal

Note: Government has fixed the MSPs of Copra (Milling) at Rs. 6500 per quintal and Copra (Ball) at Rs. 6785 per quintal for 2017.

****