Lok Sabha Question No. 6196 (UNSTARRED), answered on 2017-04-11
Subject: MSP for Agricultural Produce
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: MD. BADARIDDOZA KHAN, ASADUDDIN OWAISI, DEVJI MANSINGRAM PATEL

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

## LOK  SABHA UNSTARRED QUESTION NO.6196

TO BE ANSWERED ON THE  11 TH  APRIL, 2017

## MSP FOR AGRICULTURAL PRODUCE

6196.  SHRI MD. BADARUDDOZA KHAN: SHRI ASADUDDIN OWAISI: SHRI DEVJI M. PATEL:

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

- (a) the  criteria  on  which  production  targets  for  different  crops  are  decided  and  the manner in which the Government measures this target during the course of the time;
- (b) whether it is a fact that the National Commission on Farmers headed by Dr. M.S. Swaminathan had recommended for fixing of Minimum Support Price of foodgrains at least 50 per cent more than the weighted average cost of productions, if so, the details thereof;
- (c) whether the MSP for foodgrains announced by Government for 2016-17 met this recommendation or the Government is planning to implement the said recommendations  in  the  coming  years,  if  so,  the  details  thereof  and  the  crops covered/proposed to be covered thereunder and if not, the reasons therefor;
- (d) the  steps  taken  to  increase  awareness  among  farmers  about  agricultural marketing; and
- (e) whether the Government is aware that there are so many middlemen engaged in agricultural marketing who wipes out profit of farmers and if so, the details of the steps taken to safeguard the interest of the 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): Department  of  Agriculture,  Cooperation  &  Farmers  Welfare  (DAC&FW)  fixes target for production of foodgrains & commercial crops on annual basis by taking into account various factors such as the past trend of production, crop production potential, agro climatic & edaphic conditions etc. The State Government also plan their targets for the crops.

(b) & (c): Government  fixes  Minimum  Support  Price  (MSP)  for  twenty  two  (22) commodities  viz,  Wheat,  Paddy,  Maize,  Jowar,  Bajra,  Ragi,  Barley,  Arhar  (Tur), Moong,  Urad,  Gram,  Masur,  Groundnut,  Rapeseed/Mustard,  Soybean  Sesamum, Sunflower  seed,  Safflower,  Nigerseed,  Cotton,  Jute,  Copra  and  Fair  Remunerative Price  (FRP)  for  Sugarcane  based  on  the  recommendations  of  the  Commission  for Agriculture Costs & prices (CACP), including the views of concerned State Governments and Central Ministries/Departments. While recommending price policy, the  CACP  considers,  interlia,  a  number  of  important  factors  which  include  cost  of production,  trends  in  market  prices,  demand  and  supply  situation,  effect  on  general price level and effect on cost of living etc.

The MSP fixed by the Government for 2016-17 provides adequate returns over all India weighted average  paid out costs including family labour has estimated by the CACP.  MSP  is  recommended  by  CACP  based  on  objective  criteria,  considering variety of relevant factors. Hence, prescribing an increase of at least 50% on cost may distort market.

(d) & (e): The  awareness among farmers about agricultural marketing is  created through  National  Agriculture  Market  (e-NAM),  AGMARKNET,  Kisan  Portal,  SMS, Participation in Kisan Melas, exhibitions, electronic & print media.

The Government has launched National Agricultural Market (e-NAM) scheme on 14 th April,  2016.  The  scheme  aims to create  a unified agri-marketing portal for online trading of agri-produce. 417 markets across 13 States have been integrated with e-NAM by  31  March,  2017.  The  farmer  can  sell  his  produce  to  a  buyer  of  his  choice  across different markets and get maximum price of  products depending on their quality, hence eliminating the presence of middlemen.

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