Lok Sabha Question No. 2281 (UNSTARRED), answered on 2018-07-31
Subject: MSP for Kharif Crop
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: RAM KUMAR SHARMA KUSHWAHA

## GOVERNMENT OF INDIA MINISTRY OF AGRICULTURE AND FARMERS WELFARE

## DEPARTMENT OF AGRICULTURE, COOPERATION AND FARMERS WELFARE

## LOK  SABHA UNSTARRED QUESTION NO.2281

TO BE ANSWERED ON THE  31 ST  JULY, 2018

## MSP FOR KHARIF CROP

2281.  SHRI RAM KUMAR SHARMA:

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

- (a) whether  the  Government  has  announced  the  increased  MSP  for  crops  to  be produced in the ensuing kharif season;
- (b) if so, the facts thereof and whether the Government has also assessed the cost of agricultural inputs while determining the said MSP;
- (c) if so, the facts thereof; and
- (d) the  details  of  the  quantum  of  expenditure  assessed  by  the  Government  in  the form  of  wages  of  labourers  diesel  for  irrigation  cost  of  seeds,  chemical  fertilizers, insecticides etc.?

## ANSWER

MINISTER OF  STATE IN THE  MINISTRY OF  AGRICULTURE AND  FARMERS  WELFARE

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

- (a) to (d): Government  of  India  has  announced  the  increased  Minimum  Support Prices  (MSPs)  for  the  14  mandated  Kharif  crops  of  2018-19  season  the  basis  of recommendations  of  Commission  for  Agricultural  Costs  and  Prices  (CACP), after considering the  views  of  State  Governments  and  Central  Ministries/Departments concerned and other relevant factors. While recommending MSPs, the CACP considers host  of  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.

Cost of production include all paid out costs such as those incurred on account of hired  human  labour,  bullock  labour/machine  labour,  rent  paid  for  leased  in  land, expenses incurred in cash and kind on the use of material inputs like seeds, fertilizers, manures, irrigation charges, insecticides, depreciation on implements and farm buildings,  interest  on  working  capital,  diesel/electricity  for  operation  of  pump  sets  etc, miscellaneous expenses and imputed value of family labour.

The methodology adopted by CACP is on the basis of the recommendations of expert committees on the 'methodology of cost of production'. Based on the latest three years  actual  cost  estimates  provided  by  the  Directorate  of  Economics  &  Statistics, Ministry of Agriculture and Farmers Welfare which is compiled under ' Comprehensive Scheme  for  studying  the  Costs  of  Cultivation  of  Principal  Crops  in  India' ,  CACP undertakes cost projection exercise through the Crop Input Price Index (CIPI) crop-wise, state-wise  for  the  ensuing  season  under  certain  implicit  assumptions  by  utilizing statistical  techniques.  Details  of  various  components of  CIPI are  given  in  Annexure  I. The  CACP  has  factored  in  the  cost  of  various  inputs  in  its  projections  of  costs  of production.

Details of MSPs of Kharif crops are given at Annexure II.

## Annexure-I

Annexure referred to in reply to part (a) to (d) of Lok Sabha Unstarred Question No. 2281 due for reply on 31.07.2018.

All India Kharif Crops Input Price Index (Base 2011-12 =100)

| Inputs                             | Weights                            | Kharif crops Input Price Index   | Kharif crops Input Price Index   | Kharif crops Input Price Index   | %change in input index 2018-19   |
|------------------------------------|------------------------------------|----------------------------------|----------------------------------|----------------------------------|----------------------------------|
|                                    |                                    | 2016-17                          | 2017-18                          | 2018-19                          | over 2017-18                     |
| Human labour                       | 0.53                               | 165.12                           | 172.46                           | 179.45                           | 4.1                              |
| Bullock labour                     | 0.06                               | 186.13                           | 192.53                           | 199.03                           | 3.4                              |
| Machine labour                     | 0.13                               | 118.57                           | 124.33                           | 130.53                           | 5.0                              |
| Seeds                              | 0.08                               | 154.79                           | 164.89                           | 176.19                           | 6.9                              |
| Fertilizers                        | 0.09                               | 153.93                           | 158.49                           | 163.28                           | 3.0                              |
| Manures                            | 0.03                               | 153.65                           | 158.04                           | 162.58                           | 2.9                              |
| Insecticides                       | 0.03                               | 125.29                           | 131.00                           | 137.04                           | 4.6                              |
| Irrigation charges                 | 0.05                               | 107.60                           | 109.34                           | 111.14                           | 1.7                              |
| Composite Input Price Index (CIPI) | Composite Input Price Index (CIPI) | 154.15                           | 160.76                           | 167.38                           | 4.1                              |
| Percentage Change(year on year)    | Percentage Change(year on year)    | 4.6                              | 4.3                              | 4.1                              | -                                |

## Annexure-II

Annexure referred to in reply to part (a) to (d) of Lok Sabha Unstarred Question No. 2281 due for reply on 31.07.2018.

Minimum Support Prices (MSPs) of Kharif crops

(Rs/quintal)

| Commodity      | Variety       | 2017-18   | 2018-19   | Increase   | Increase   |
|----------------|---------------|-----------|-----------|------------|------------|
|                |               |           |           | Absolute   | Percentage |
| Paddy          | Common        | 1550      | 1750      | 200        | 12.90      |
| Paddy          | Grade A       | 1590      | 1770      | 180        | 11.32      |
| Jowar          | Hybrid        | 1700      | 2430      | 730        | 42.94      |
| Jowar          | Maldandi      | 1725      | 2450      | 725        | 42.03      |
| Bajra          | -             | 1425      | 1950      | 525        | 36.84      |
| Ragi           | -             | 1900      | 2897      | 997        | 52.47      |
| Maize          | -             | 1425      | 1700      | 275        | 19.30      |
| Arhar(Tur)     | -             | 5450      | 5675      | 225        | 4.13       |
| Moong          | -             | 5575      | 6975      | 1400       | 25.11      |
| Urad           | -             | 5400      | 5600      | 200        | 3.70       |
| Groundnut      | -             | 4450      | 4890      | 440        | 9.89       |
| Sunflower Seed | -             | 4100      | 5388      | 1288       | 31.42      |
| Soyabean       | -             | 3050      | 3399      | 349        | 11.44      |
| Sesamum        | -             | 5300      | 6249      | 949        | 17.91      |
| Nigerseed      | -             | 4050      | 5877      | 1827       | 45.11      |
| Cotton         | Medium Staple | 4020      | 5150      | 1130       | 28.11      |
| Cotton         | Long Staple   | 4320      | 5450      | 1130       | 26.16      |

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