Lok Sabha Question No. 2924 (UNSTARRED), answered on 2018-03-13
Subject: Cost of Production of Agricultural Produce
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: BODH SINGH BHAGAT

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

## LOK  SABHA UNSTARRED QUESTION NO.2924

TO BE ANSWERED ON THE  13 TH  MARCH, 2018

## COST OF PRODUCTION OF AGRICULTURAL PRODUCE

2924.  SHRI BODHSINGH BHAGAT:

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

- (a) the details of norms fixed by the Government regarding cost of production while determining the support prices for rice, wheat, soyabean and other kharif and rabi crops in 2017-18;
- (b) whether the Government has announced new support prices for rabi and kharif crops  by  increasing  the  cost  of  production  by  one  and  a  half  time  during  the  budget session of 2017-18; and
- (c) if  so, the  details regarding projected cost of production of kharif and rabi crops and likely minimum support price to be determined by the Government in future?

## 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): Government has fixed Minimum Support Prices (MSPs) of 20 mandated crops including rice, wheat, soyabean and other kharif and rabi crops for 2017-18 on the basis recommendation  of  Commission  for  Agricultural  Costs  &  Prices  (CACP).  CACP considers all paid out cost and imputed value of wages of family labour and depreciation of farm machinery & building in recommending MSPs.

The estimates of cost of cultivation/cost of production are made available to the CACP through  the  Comprehensive  Scheme  for  Studying  the  Cost  of  Cultivation  of  Principal Crops, operated by Directorate of Economics and Statistics, Department of Agriculture, Cooperation & Farmers Welfare, Ministry of Agriculture & Farmers Welfare, Government  of  India.  These  data  are  collected  with  the  help  of  State  Agricultural Universities (SAUs)/Institutions located in various states.

Cost of production varies in different States on account of difference in levels of irrigation,  resource  endowment,  farm  mechanization,  land  holding  size,  yield  of  crops etc.  CACP  uses  all  India  weighted  average  cost  of  production  while  making  its recommendations on  MSP and recommends uniform MSP which is applicable for  all States.

(b) & (c): The Government has already announced the MSPs for 2017-18 of kharif crops on 7 th June, 2017 and of rabi crops on 24 th October, 2017 on the basis of all-India weighted average cost of production (A2+FL) projected by CACP. The MSPs fixed by Government, projected cost of production (A2+FL) and returns over A2+FL of kharif and rabi crops for 2017-18 is at Annexure.

Out of 20 mandated kharif and rabi crops (14 kharif crops and 6 rabi crops), the MSPs fixed by the Government for 2017-18 for 3 kharif crops viz. bajra, tur and urad; 5 rabi  crops  viz.  wheat,  barley,  gram,  masur  and  rapeseed/mustard;  provide  returns  of more than 50 per cent over weighted average projected cost of production (A2+FL).

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 for kharif crops also in the lines of that already implemented for majority of rabi crops in October 2017.

Annexure Annexure referred to in reply to parts (b) and (c) of Lok Sabha Unstarred Question No.2924 due for reply on 13.03.2018. Minimum Support Prices (MSPs), Projected cost of production (A2+FL) and return

Over A2+FL of Kharif and rabi crops for 2017-18

(Rs.per quintal)

|         | Crops                  | 2017-18   | 2017-18   | 2017-18            |
|---------|------------------------|-----------|-----------|--------------------|
| Sl. No. | KHARIF CROPS           | A2+FL     | MSP       | %Return over A2+FL |
| 1       | PADDY                  | 1117      | 1550      | 38.76              |
| 2       | JOWAR                  | 1556      | 1700      | 9.25               |
| 3       | BAJRA                  | 949       | 1425      | 50.16              |
| 4       | MAIZE                  | 1044      | 1425      | 36.49              |
| 5       | RAGI                   | 1861      | 1900      | 2.10               |
| 6       | ARHAR(Tur)             | 3318      | 5450      | 64.26              |
| 7       | MOONG                  | 4286      | 5575      | 30.07              |
| 8       | URAD                   | 3265      | 5400      | 65.39              |
| 9       | COTTON (Medium Staple) | 3276      | 4020      | 22.71              |
|         | (Long Staple)          | 3276      | 4320      | 31.87              |
| 10      | GROUNDNUT IN SHELL     | 3159      | 4450      | 40.87              |
| 11      | SUNFLOWER SEED         | 3481      | 4100      | 17.78              |
| 12      | SOYABEEN               | 2121      | 3050      | 43.80              |
| 13      | SESAMUM                | 4067      | 5300      | 30.32              |
| 14      | NIGERSEED              | 3912      | 4050      | 3.53               |
|         | RABI CROPS             |           |           |                    |
| 1       | WHEAT                  | 817       | 1735      | 112.36             |
| 2       | BARLEY                 | 845       | 1410      | 66.86              |
| 3       | GRAM                   | 2461      | 4400      | 78.79              |
| 4       | MASUR (LENTIL)         | 2366      | 4250      | 79.63              |
| 5       | RAPESEED/MUSTARD       | 2123      | 4000      | 88.41              |
| 6       | SAFFLOWER              | 3125      | 4100      | 31.20              |

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