Lok Sabha Question No. 5854 (UNSTARRED), answered on 2018-04-03
Subject: Fixation of Minimum Support Price
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: RAM CHARITRA

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

## LOK  SABHA UNSTARRED QUESTION NO.5854

TO BE ANSWERED ON THE 3 RD  APRIL, 2018

## FIXATION OF MINIMUM SUPPORT PRICE

## 5854.     SHRI RAM CHARITRA NISHAD:

Will the Minister of AGRICULTURE AND FARMERS WELFARE कृ ष एवं कसान कयाण मंी be pleased to state:

- (a) whether  it  is  a  fact  that  the  issue  of  fixation  of  minimum  support  price  needs  a comprehensive reorientation in order to ensure remunerative prices for agriculture produce, if so, the details thereof;
- (b) whether it is also true that there is a need to work for comprehensive justice to farmers; and
- (c) if so, the steps proposed to be taken up by the Government in this regard?

## ANSWER

## MINISTER OF STATE IN THE MINISTRY OF AGRICULTURE AND FARMERS WELFARE

कृ ष एवं कसान कयाण मंालय म राय मंी (SHRI  GAJENDRA SINGH SHEKHAWAT)

- (a): From time to time, expert committees have been constituted to review the methodology for  fixation  of  MSP  and  to  suggest  various  features  for  improvement.  Government  fixes minimum support prices (MSPs) of 22 mandated agricultural crops and fair and remunerative price(FRP)  for  sugarcane  on  the  basis  of  recommendations  of  Commission  for  Agricultural Costs  and  Prices  (CACP),  after  considering  the  views  of  State  Governments  and  Central Ministries/Department  concerned  and  other  relevant  factors  in  order  to  ensure  remunerative prices for agriculture produce. While recommending MSPs, CACP takes into account the cost of production,  overall  demand-supply,  domestic  and  international  prices,  inter-crop  price  parity, terms of trade between agricultural and non agricultural sectors, the likely effect on the rest of economy, besides ensuring rational utilization of production resources like land and water.

The  Union  Budget  for  2018-19  has  announced  the  pre-determined  principle  to  keep MSPs at levels of one and half time the cost of production. The Budget for 2018-19 has also indicated that NITI Aayog in consultation with central and state governments will put in place a fool proof mechanism so that farmers will get adequate price for their produce.

(b) & (c): Government  is  committed  to  farmers  welfare  and  towards  this  objective  it  has changed  its  strategy  from  being  production  centric  to  an  income  centric  one.  Government constituted  an  Inter-Ministerial  Committee  on  13.04.2016  under  the  Chairmanship  of  Chief Executive Officer, National Rainfed Area Authority, Department of Agriculture, Cooperation and Farmers  Welfare  to examine issues relating to doubling of farmers' income  and recommend a

strategy  to  achieve  the  same  by  the  year  2022.  Alongside  working  on  a  comprehensive strategy,  the  Committee  has  been  parallelly  suggesting  various  interventions  like  Model Agricultural Produce and Livestock Marketing (Promotion and Facilitation) Act, 2017, a five year roadmap  for  pulses  production  for  achieving  a  level  of  production  of  24  million  tonnes  and comprehensive roadmap for increasing the production of oilseeds in the country.

At  present,  the  Government  is  implementing  various  schemes  and  recalibrating  them based  on  the  suggested  intervention  to  synchronise  with  higher  gains  for  the  farmers  which include Soil Health Cards (SHC), production and availability of quality seeds, Pradhan Mantri Krishi Sinchai Yojana (PMKSY), e- National Agriculture Market (e-NAM), Pradhan Mantri Fasal Bima  Yojana  (PMFBY),  Paramparagat  Krishi  Vikas  Yojana  (PKVY),  National  Mission  for Sustainable  Agriculture (NMSA)  and  promotion  of  allied  activities like dairying, poultry, beekeeping and fisheries.

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