Lok Sabha Question No. 5197 (UNSTARRED), answered on 2018-03-27
Subject: Remunerative Prices for Paddy
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: JYOTI DHURVE, ASHOK MAHADEORAO NETE

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

## LOK  SABHA UNSTARRED QUESTION NO.5197

TO BE ANSWERED ON THE 27 TH  MARCH, 2018

## REMUNERATIVE PRICES FOR PADDY

## 5197.      SHRIMATI JYOTI DHURVE:

SHRI ASHOK MAHADEORAO NETE:

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

- (a) the details of the production of paddy in the country during the last three years and the current year, State-wise and Year-wise till date;
- (b) whether  the  farmers  engaged  in  the  production  of  paddy  in  different  States  are  not getting remunerative prices;
- (c) if so, the details thereof; and
- (d) the  steps  taken  by  the  Government  to  ensure  that  appropriate  remunerative  price  for paddy is provided to the farmers?

## ANSWER

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

कृ ष एवं कसान कयाण मंालय म राय मंी (SHRI  PARSHOTTAM  RUPALA)

- (a): State-wise details of production of rice during the last three years and current year i.e. from 2014-15 to 2017-18 (as per Second Advance Estimates) is given at Annexure-I.
- (b) & (c): Cost of production varies in different States on account of difference in levels of irrigation, resource endowment, farm mechanisation, land holding size, yield of crops etc. The Commission for Agricultural Costs and Prices uses all India weighted average cost of production while  making  its  recommendations  on  Minimum  Support  Prices  (MSPs)  and  recommends uniform MSPs for the whole country which is applicable to all States/UTs. The MSPs fixed by the Government provides adequate returns over all-India weighted average cost of production. State-wise  returns  on  MSPs  fixed  by  Government  over  weighted  average  cost  of  production varies  on  account  of  variation  in  yield  level  and  cost  of  cultivation  of  the  crops.    In  case  of paddy,  the  returns  over  weighted  average  cost  of  production  ranges  from  130.7  per  cent  in Punjab to (-) 1.2 per cent in Maharashtra for 2017-18. The lower return of paddy in Maharashtra is due to lower yield and higher cost of cultivation.

The  return  over  weighted  average  cost  of  production  (A2+FL)  for  MSP  fixed  by Government of paddy for 2017-18 in various States is at Annexure-II.

(d): Government has taken several steps to ensure remunerative prices to farmers for their produce  which  include  fixing  MSPs  for  major  agricultural  crops,  undertaking  procurement through designated procurement agencies, implementing e-National Agriculture Market, enacting the Model Agricultural Produce and Livestock Marketing (Promotion & Facilitation) Act, 2017 and promoting Farmer Producer Organization (FPOs).

The Government extends price support to paddy through the Food Corporation of India (FCI) and State agencies across country. Under procurement policy, whatever quantum that are offered by farmers within stipulated time period & conforming to the specifications prescribed by Government of India, are purchased at MSP by the State Government agencies including FCI for central pool. However, if producer/farmer gets better price in comparison to MSP, they are free to sell their produce in open market.

Further,  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.

## Annexure-I

## Annexure  referred  to  in  reply  to  part  (a)  of  the  Lok  Sabha Unstarred Question No. 5197 due for reply on 27.03.2018

## State-wise Production of Rice during 2014-15 to 2017-18

| State/ UT        | Production ('000 Tonnes)   | Production ('000 Tonnes)   | Production ('000 Tonnes)   | Production ('000 Tonnes)   |
|------------------|----------------------------|----------------------------|----------------------------|----------------------------|
| State/ UT        | 2014-15                    | 2015-16                    | 2016-17                    | 2017-18*                   |
| Andhra Pradesh   | 7233.9                     | 7488.7                     | 7452.4                     | 8051.3                     |
| Assam            | 5222.7                     | 5125.1                     | 4727.4                     | 5158.0                     |
| Bihar            | 6356.7                     | 6802.2                     | 8239.3                     | 7296.4                     |
| Chattisgarh      | 6322.1                     | 5789.4                     | 8048.4                     | 6910.6                     |
| Gujarat          | 1830.9                     | 1702.0                     | 1930.0                     | 1762.0                     |
| Haryana          | 4006.0                     | 4145.0                     | 4453.0                     | 3946.8                     |
| Himachal Pradesh | 125.2                      | 129.9                      | 146.6                      | 130.5                      |
| Jammu & Kashmir  | 517.2                      | 646.4                      | 572.2                      | 596.3                      |
| Jharkhand        | 3361.9                     | 2882.2                     | 3841.8                     | 3775.2                     |
| Karnataka        | 3541.0                     | 3021.0                     | 2604.8                     | 2359.0                     |
| Kerala           | 562.1                      | 549.3                      | 437.1                      | 418.7                      |
| Madhya Pradesh   | 3625.3                     | 3546.7                     | 4226.8                     | 3908.4                     |
| Maharashtra      | 2946.0                     | 2593.0                     | 3109.5                     | 2660.5                     |
| Odisha           | 8298.2                     | 5875.4                     | 8325.9                     | 7619.0                     |
| Punjab           | 11107.0                    | 11823.0                    | 11586.2                    | 12283.3                    |
| Rajasthan        | 366.7                      | 369.8                      | 452.7                      | 428.8                      |
| Tamil Nadu       | 5727.8                     | 7517.1                     | 2369.4                     | 6395.9                     |
| Telangana        | 4440.8                     | 3047.0                     | 5173.4                     | 5825.0                     |
| Uttar Pradesh    | 12167.9                    | 12501.0                    | 13754.0                    | 13345.9                    |
| UttaraKhand      | 603.7                      | 639.1                      | 630.0                      | 663.0                      |
| West Bengal      | 14677.2                    | 15953.9                    | 15302.5                    | 14990.0                    |
| Others           | 2441.7                     | 2261.1                     | 2315.0                     | 2483.0                     |
| All India        | 105482.1                   | 104408.2                   | 109698.4                   | 111007.8                   |

Annexure-II

## Annexure referred to in reply to parts (b) and (c) of the Lok Sabha Unstarred Question No. 5197 due for reply on 27.03.2018

## Weighted Average Projected Cost of Production (A2+FL) and Minimum Support Price (MSP) of Paddy for 2017-18 Crop Season

|                | Rs./Qtl.   | Rs./Qtl.   | Rs./Qtl.            |                      |
|----------------|------------|------------|---------------------|----------------------|
| State          | A2+FL      | MSP        | Return over (A2+FL) | %Return over (A2+FL) |
| 1              | 2          | 3          | 4=(3-2)             | 5                    |
| Andhra Pradesh | 1062       | 1550       | 488                 | 46.0                 |
| Assam          | 1230       | 1550       | 320                 | 26.0                 |
| Bihar          | 1053       | 1550       | 497                 | 47.2                 |
| Chattisgarh    | 915        | 1550       | 635                 | 69.4                 |
| Gujarat        | 1061       | 1550       | 489                 | 46.1                 |
| Haryana        | 1049       | 1550       | 501                 | 47.8                 |
| Jharkhand      | 1359       | 1550       | 191                 | 14.1                 |
| Karnataka      | 1062       | 1550       | 488                 | 46.0                 |
| Kerala         | 1252       | 1550       | 298                 | 23.8                 |
| Madhya Pradesh | 1027       | 1550       | 523                 | 50.9                 |
| Maharashtra    | 1569       | 1550       | -19                 | -1.2                 |
| Odisha         | 1327       | 1550       | 223                 | 16.8                 |
| Punjab         | 672        | 1550       | 878                 | 130.7                |
| Tamil Nadu     | 1146       | 1550       | 404                 | 35.3                 |
| Uttar Pradesh  | 1073       | 1550       | 477                 | 44.5                 |
| UttaraKhand    | 1009       | 1550       | 541                 | 53.6                 |
| West Bengal    | 1409       | 1550       | 141                 | 10.0                 |
| All India      | 1117       | 1550       | 433                 | 38.8                 |

********