Lok Sabha Question No. 1561 (UNSTARRED), answered on 2017-07-25
Subject: MSP of Wheat and Pulses
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: KURUPPASSERY VARKEY THOMAS, YERRAM VENKATA SUBBAREDDY

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

## LOK  SABHA UNSTARRED QUESTION NO.1561

TO BE ANSWERED ON THE  25 TH  JULY, 2017

## MSP OF WHEAT AND PULSES

1561.  PROF. K.V. THOMAS: SHRI Y.V. SUBBA REDDY:

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

- (a) the details of each of the 23 crops for which MSP is fixed by the Government;
- (b) the  details  of  the  MSP  fixed  by  the  Government  for  each  of  the  above  crops during the last decade;
- (c) whether the farmers are satisfied with the latest MSP for rice, wheat and pulses, if so, the details thereof;
- (d) whether the Government is considering to provide some additional assistance to compensate the farmers, if so, the details thereof;
- (e) the  details  of  the  cost  of  production  of  each  of  the  23  crops  during  the  last decade, year-wise and crop-wise;
- (f) the details of the crops which qualified under the Market Intervention Scheme as and when the prices of such crops fall lower than the production cost; and
- (g) the various steps taken by the Government to provide adequate MSP to farmers?

## ANSWER

MINISTER OF  STATE IN THE  MINISTRY OF  AGRICULTURE AND  FARMERS  WELFARE

‡ãðŠãäÓã एवं  कसान  कयाण ½ãâ¨ããÊã¾ã ½ãñâ Àã·¾ã ½ãâ¨ããè (  SHRI  S.S. AHLUWALIA)

- (a) to (d): Government  fixes  Minimum  Support  Prices  (MSPs)  for  twenty  two  (22) major crops viz. Paddy, Jowar, Bajra, Maize, Ragi, Arhar, Moong, Urad, Groundnut-inshell,  Soyabean,  Sunflower,  Sesamum,  Nigerseed,  Cotton,  Wheat,  Barley,  Gram, Masur  (Lentil),  Rapeseed/Mustardseed,  Safflower,  Jute  and  Copra    and  Fair  and Remunerative Price (FRP) for Sugarcane on the recommendation of the Commission for Agricultural Costs & Prices (CACP).

-2-

Suggestions  from  State  Governments  and  various  farmer  organizations  are received from time to time for increasing the MSP of crops. Government fixes Minimum Support Price (MSP) for the major agricultural produce on the recommendations of the Commission  for  Agricultural  Costs  &  Prices  (CACP),  the  views  of  concerned  State Governments and Central Ministries/Departments. While formulating its recommendations  on  price  policy,  CACP  considers  various  important  factors  that include cost of cultivation, trends in market prices, demand and supply situation, effect on general price level, effect on cost of living etc.

The Government offers to procure the agricultural produce at MSP.  However, farmers are free to sell their produce to Government procurement agencies at MSP or in the open market as is advantageous to them.

The MSPs fixed by Government since 2007-08 is given at Annexure I.

(e): The all  India  weighted  average  all  paid  out  cost  of  production  including  family labour (A2+FL) as estimated by CACP since 2007-08 is at Annexure II.

(f): Government also implements Market Intervention Scheme (MIS) for procurement of  agricultural  and  horticultural  commodities  not  covered  under  the  Minimum  Support Price  on  the  request  of  State/UT  Government.  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).

(g): Government  has  taken  several  steps  to  ensure  MSP  for  agricultural  produce which inter alia includes setting up of procurement centers keeping in view the potential in  the  areas;  creating  awareness  among  the  farmers  of  the  MSP  operations;  making payment through arthias/co-operative societies to the farmers; encouraging decentralized procurement; adopting e-procurement system; engaging private players in certain States to participate  in  procurement  operations,  implementing  e-National Agriculture Market, promoting Farmer Producer Organizations (FPOs)  etc.

## Annexure referred to in reply to parts (a) to (d) of Lok Sabha Unstarred Question No. 1561 due for reply on 25.07.2017

## Minimum Support Prices

| Sl. No.   | Commodity          | Variety       | 2007-08    | 2008-09   | 2009-10   | 2010-11   | 2011-12   |
|-----------|--------------------|---------------|------------|-----------|-----------|-----------|-----------|
|           | KHARIF CROPS       |               |            |           |           |           |           |
| 1         | PADDY              | Common        | 745$$/850~ | 900$      | 1000$     | 1000      | 1080      |
| 1         | PADDY              | Grade 'A'     | 775$$/880~ | 930$      | 1030$     | 1030      | 1110      |
| 2         | JOWAR              | Hybrid        | 600        | 840       | 840       | 880       | 980       |
| 2         | JOWAR              | Maldandi      | 620        | 860       | 860       | 900       | 1000      |
| 3         | BAJRA              |               | 600        | 840       | 840       | 880       | 980       |
| 4         | MAIZE              |               | 620        | 840       | 840       | 880       | 980       |
| 5         | RAGI               |               | 600        | 915       | 915       | 965       | 1050      |
| 6         | ARHAR(Tur)         |               | 1590^^     | 2000      | 2300      | 3000      | 3200      |
| 7         | MOONG              |               | 1740^^     | 2520      | 2760      | 3170      | 3500      |
| 8         | URAD               |               | 1740^^     | 2520      | 2520      | 2900      | 3300      |
| 9         | COTTON             | Medium Staple | 1800       | 2500ª     | 2500ª     | 2500ª     | 2800ª     |
| 9         | COTTON             | Long Staple   | 2030       | 3000ªª    | 3000ªª    | 3000ªª    | 3300ªª    |
| 10        | GROUNDNUT IN SHELL |               | 1550       | 2100      | 2100      | 2300      | 2700      |
| 11        | SUNFLOWER SEED     |               | 1510       | 2215      | 2215      | 2350      | 2800      |
| 12        | SOYABEEN           | Black         | 910        | 1350      | 1350      | 1400      | 1650      |
| 12        | SOYABEEN           | Yellow        | 1050       | 1390      | 1390      | 1440      | 1690      |
| 13        | SESAMUM            |               | 1580       | 2750      | 2850      | 2900      | 3400      |
| 14        | NIGERSEED          |               | 1240       | 2405      | 2405      | 2450      | 2900      |
|           | RABI CROPS         |               |            |           |           |           |           |
| 15        | WHEAT              |               | 1000       | 1080      | 1100      | 1170$     | 1285      |
| 16        | BARLEY             |               | 650        | 680       | 750       | 780       | 980       |
| 17        | GRAM               |               | 1600       | 1730      | 1760      | 2100      | 2800      |
| 18        | MASUR (LENTIL)     |               | 1700       | 1870      | 1870      | 2250      | 2800      |
| 19        | RAPESEED/ MUSTARD  |               | 1800       | 1830      | 1830      | 1850      | 2500      |
| 20        | SAFFLOWER          |               | 1650       | 1650      | 1680      | 1800      | 2500      |

(Rs. per quintal)

## Minimum Support Prices

| Sl. No.   | Commodity          | Variety       | 2012-13   | 2013-14   | 2014-15   | 2015-16   | 2016-17   | 2017-18   |
|-----------|--------------------|---------------|-----------|-----------|-----------|-----------|-----------|-----------|
|           | KHARIF CROPS       |               |           |           |           |           |           |           |
| 1         | PADDY              | Common        | 1250      | 1310      | 1360      | 1410      | 1470      | 1550      |
| 1         | PADDY              | Grade 'A'     | 1280      | 1345      | 1400      | 1450      | 1510      | 1590      |
| 2         | JOWAR              | Hybrid        | 1500      | 1500      | 1530      | 1570      | 1625      | 1700      |
| 2         | JOWAR              | Maldandi      | 1520      | 1520      | 1550      | 1590      | 1650      | 1725      |
| 3         | BAJRA              |               | 1175      | 1250      | 1250      | 1275      | 1330      | 1425      |
| 4         | MAIZE              |               | 1175      | 1310      | 1310      | 1325      | 1365      | 1425      |
| 5         | RAGI               |               | 1500      | 1500      | 1550      | 1650      | 1725      | 1900      |
| 6         | ARHAR(Tur)         |               | 3850      | 4300      | 4350      | 4625^     | 5050^^    | 5450^     |
| 7         | MOONG              |               | 4400      | 4500      | 4600      | 4850^     | 5225^^    | 5575^     |
| 8         | URAD               |               | 4300      | 4300      | 4350      | 4625^     | 5000^^    | 5400^     |
| 9         | COTTON             | Medium Staple | 3600      | 3700      | 3750      | 3800      | 3860      | 4020      |
| 9         | COTTON             | Long Staple   | 3900      | 4000      | 4050      | 4100      | 4160      | 4320      |
| 10        | GROUNDNUT IN SHELL |               | 3700      | 4000      | 4000      | 4030      | 4220*     | 4450^     |
| 11        | SUNFLOWER SEED     |               | 3700      | 3700      | 3750      | 3800      | 3950*     | 4100*     |
| 12        | SOYABEEN           | Black         | 2200      | 2500      | 2500      | -         | -         | -         |
| 12        | SOYABEEN           | Yellow$$      | 2240      | 2560      | 2560      | 2600      | 2775*     | 3050^     |
| 13        | SESAMUM            |               | 4200      | 4500      | 4600      | 4700      | 5000^     | 5300*     |
| 14        | NIGERSEED          |               | 3500      | 3500      | 3600      | 3650      | 3825*     | 4050*     |
|           | RABI CROPS         |               |           |           |           |           |           |           |
| 15        | WHEAT              |               | 1350      | 1400      | 1450      | 1525      | 1625      |           |
| 16        | BARLEY             |               | 980       | 1100      | 1150      | 1225      | 1325      |           |
| 17        | GRAM               |               | 3000      | 3100      | 3175      | 3500**    | 4000^     |           |
| 18        | MASUR (LENTIL)     |               | 2900      | 2950      | 3075      | 3400**    | 3950@     |           |
|           | RAPESEED/          |               | 3000      | 3050      | 3100      | 3350      | 3700*     |           |
| 20        | SAFFLOWER          |               | 2800      | 3000      | 3050      | 3300      | 3700*     |           |

(Rs. per quintal)

$$ Minimum Support Price of Soyabean yellow is also applicable to black variety during 2015-16, 2016-17 and 2017-18.

* Including Bonus of Rs. 100 per quintal.

** Including Bonus of Rs. 75 per quintal.

^ Including Bonus of Rs. 200 per quintal.

^^ Including Bonus of Rs. 425 per quintal.

@ including bonus of Rs. 150 per quintal

## Minimum Support Prices for other crops

(Rs. per quintal)

|   Sl. No. | Commodity                         | Variety   | 2007-08   |   2008-09 | 2009-10   | 2010-11   | 2011-12   |
|-----------|-----------------------------------|-----------|-----------|-----------|-----------|-----------|-----------|
|         1 | COPRA (Calender Year)             | Milling   | 3620      |   3660    | 4450      | 4450      | 4525      |
|         1 | COPRA (Calender Year)             | Ball      | 3870      |   3910    | 4700      | 4700      | 4775      |
|         2 | DE-HUSKED COCONUT (Calender Year) |           | -         |    988    | 1200      | 1200      | 1200      |
|         3 | JUTE                              |           | 1055      |   1250    | 1375      | 1575      | 1675      |
|         4 | SUGARCANE                         |           | 81.18     |     81.18 | 129.84¤   | 139.12¤   | 145.00¤*  |

¤ Fair and remunerative price.

* At 9.5 percent recovery, subject to a premium of Rs.1.53 for every 0.1 percent increase in the recovery above 9.5 percent.

## Minimum Support Prices for other crops

(Rs. per quintal)

|   Sl. No. | Commodity                         | Variety   |   2012-13 |   2013-14 |   2014-15 |   2015-16 |   2016-17 |   2017-18 |
|-----------|-----------------------------------|-----------|-----------|-----------|-----------|-----------|-----------|-----------|
|         1 | COPRA (Calender Year)             | Milling   |      5100 |      5250 |      5250 |      5550 |      5950 |      6500 |
|         1 | COPRA (Calender Year)             | Ball      |      5350 |      5500 |      5500 |      5830 |      6240 |      6785 |
|         2 | DE-HUSKED COCONUT (Calender Year) |           |      1400 |      1425 |      1425 |      1500 |      1600 |      1760 |
|         3 | JUTE                              |           |      2200 |      2300 |      2400 |      2700 |      3200 |      3500 |
|         4 | SUGARCANE$                        |           |       170 |       210 |       220 |       230 |       230 |       255 |

$ Fair and remunerative price.

******

## Annexure II

## Annexure referred to in reply to part (e) of Lok Sabha Unstarred Question No. 1561 due for reply on 25.07.2017

## All India Weighted Average all Paid Out Cost of Production including Family Labour (A2+FL)

(Rs. per quintal)

| Sl. No.    | Commodity          | 2007- 08    | 2008- 09    | 2009- 10    | 2010- 11    | 2011- 12    | 2012- 13    | 2013- 14    | 2014- 15    | 2015- 16    | 2016- 17    | 2017- 18    |
|------------|--------------------|-------------|-------------|-------------|-------------|-------------|-------------|-------------|-------------|-------------|-------------|-------------|
| Sl. No.    | KHARIF CROPS       |             |             |             |             |             |             |             |             |             |             |             |
| 1          | PADDY              | 439         | 456         | 458         | 551         | 673         | 814         | 961         | 978         | 1020        | 1045        | 1117        |
| 2          | JOWAR              | 546         | 586         | 616         | 761         | 905         | 1240        | 1269        | 1370        | 1467        | 1501        | 1556        |
| 3          | BAJRA              | 444         | 474         | 476         | 579         | 645         | 779         | 768         | 831         | 893         | 925         | 949         |
| 4          | MAIZE              | 449         | 513         | 539         | 604         | 723         | 814         | 860         | 914         | 941         | 966         | 1044        |
| 5          | RAGI               | 673         | 720         | 694         | 922         | 1032        | 1412        | 1338        | 1474        | 1688        | 1733        | 1861        |
| 6          | ARHAR(Tur)         | 1040        | 1074        | 1181        | 1693        | 1913        | 2765        | 3090        | 3105        | 3237        | 3241        | 3318        |
| 7          | MOONG              | 1464        | 1731        | 1991        | 2402        | 2641        | 3430        | 3775        | 3890        | 3993        | 4065        | 4286        |
| 8          | URAD               | 1269        | 1438        | 1503        | 1737        | 2027        | 3102        | 3144        | 3225        | 3455        | 3584        | 3265        |
| 9          | COTTON             | 1528        | 1541        | 1511        | 1626        | 1941        | 1970        | 2485        | 2510        | 2753        | 2889        | 3276        |
| 10         | GROUNDNUT IN SHELL | 1120        | 1252        | 1441        | 1627        | 2103        | 2873        | 2720        | 3232        | 3314        | 3371        | 3159        |
| 11         | SUNFLOWER SEED     | 1440        | 1555        | 1435        | 1729        | 2218        | 2955        | 3000        | 3129        | 3282        | 3479        | 3481        |
| 12         | SOYABEAN           | 761         | 864         | 883         | 960         | 1182        | 1726        | 1692        | 1729        | 1770        | 1852        | 2121        |
| 13         | SESAMUM            | 1484        | 1836        | 2270        | 2098        | 2532        | 2893        | 2919        | 3765        | 4132        | 4188        | 4067        |
| 14         | NIGERSEED          | 1188        | 1776        | 1950        | 1826        | 2389        | 3428        | 2279        | 3084        | 3146        | 3366        | 3912        |
| RABI CROPS | RABI CROPS         | RABI CROPS  | RABI CROPS  | RABI CROPS  | RABI CROPS  | RABI CROPS  | RABI CROPS  | RABI CROPS  | RABI CROPS  | RABI CROPS  | RABI CROPS  | RABI CROPS  |
| 15         | WHEAT              | 404         | 421         | 460         | 527         | 611         | 687         | 679         | 744         | 785         | 797         |             |
| 16         | BARLEY             | 365         | 378         | 423         | 472         | 530         | 620         | 676         | 735         | 776         | 816         |             |
| 17         | GRAM               | 877         | 938         | 1044        | 1233        | 1451        | 1696        | 1786        | 1902        | 2124        | 2241        |             |
| 18         | MASUR (LENTIL)     | 780         | 881         | 1038        | 1268        | 1688        | 1926        | 1799        | 1866        | 2015        | 2174        |             |
| 19         | RAPESEED/ MUSTARD  | 748         | 750         | 820         | 950         | 1189        | 1260        | 1307        | 1504        | 1702        | 1871        |             |
| 20         | SAFFLOWER          | 1206        | 1068        | 1439        | 1537        | 2701        | 2754        | 2558        | 3025        | 3057        | 3049        |             |
|            | OTHER CROPS        | OTHER CROPS | OTHER CROPS | OTHER CROPS | OTHER CROPS | OTHER CROPS | OTHER CROPS | OTHER CROPS | OTHER CROPS | OTHER CROPS | OTHER CROPS | OTHER CROPS |
| 21         | SUGARCANE          | 50          | 53          | 63          | 73          | 101         | 120         | 129         | 140         | 140         | 152         |             |
| 22         | COPRA              |             |             |             |             |             |             |             | 4138        | 4676        | 4758        |             |
| 23         | JUTE               | 850         | 875         | 983         | 1162        | 1436        | 1566        | 1702        | 2042        | 2125        | 2160        |             |

A2+FL: All india paid out cost inclusive of family labour  for copra is not available prior to 2014-15

NOTE: Paid out cost covers the cost on account of all inputs like human labour, bullock labour, machine labour, seeds, fertilizers.