Lok Sabha Question No. 3986 (UNSTARRED), answered on 2018-03-20
Subject: MSP for Rabi Crops
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: SISIR KUMAR ADHIKARI

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

## LOK  SABHA UNSTARRED QUESTION NO. 3986

TO BE ANSWERED ON THE 20 TH  MARCH, 2018

## MSP FOR RABI CROPS

3986.  SHRI SISIR KUMAR ADHIKARI:

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

- (a) whether the Government proposes to fix Minimum Support Price (MSP) for procurement of rabi crops in country;
- (b) if  so,  whether  the  Government  has  made  any  survey  and  prepare  any  report  on  the actual paid out costs of rabi crops;
- (c) if so, the details of the MSP rates proposed and paid to the farmers during the last kharif season of 2017-18 and the Government's expenditure thereon; and
- (d) the details of the proposals and budget estimates of the Government on market reforms, contract farming and land issues and other issues 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) & (b): Government had fixed the minimum support prices (MSPs) of 6 mandated rabi crops  for  2017-18  season  to  be  procured  in  2018-19  on  24 th October,  2017  on  the  basis  of recommendations  of  the  Commission  for  Agricultural  Costs  &  Prices  (CACP).  Cost  of production is one of the important factors taken into account by CACP in recommending the 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.  The  CACP  uses  all-India  weighted  average  cost  of  production  (A2+FL)  in recommending MSPs which include all paid out costs like those incurred on account of hired human labour, bullock labour/machine labour and rent paid for leased in land, expenses on use of material inputs like seeds, fertilizers, manures,  irrigation charges including cost of diesel/electricity for operation of pump sets and imputed value of wages of family labour and depreciation of farm machinery & building.

(c): The  MSPs  of  the  crops  for  kharif  season  of  2017-18  fixed  by  the  Government  is  as under:

|   Sl. No. | Kharif crop        | Variety       | MSP (Rs. per quintal)   |
|-----------|--------------------|---------------|-------------------------|
|         1 | Paddy              | Common        | 1550                    |
|         1 | Paddy              | Grade 'A'     | 1590                    |
|         2 | Jowar              | Hybrid        | 1700                    |
|         2 | Jowar              | Maldandi      | 1725                    |
|         3 | Bajra              |               | 1425                    |
|         4 | Maize              |               | 1425                    |
|         5 | Ragi               |               | 1900                    |
|         6 | Arhar(Tur)         |               | 5450^                   |
|         7 | Moong              |               | 5575^                   |
|         8 | Urad               |               | 5400^                   |
|         9 | Cotton             | Medium Staple | 4020                    |
|         9 | Cotton             | Long Staple   | 4320                    |
|        10 | Groundnut in shell |               | 4450^                   |
|        11 | Sunflower seed     |               | 4100*                   |
|        12 | Soyabeen           |               | 3050^                   |
|        13 | Sesamum            |               | 5300*                   |
|        14 | Nigerseed          |               | 4050*                   |

^ including bonus of Rs. 200 per quintal.

* including bonus of Rs. 100 per quintal.

Government offers to procure agricultural crops at the MSPs  through various governmental  agencies.  However,  farmers  are  free  to  sell  their  produce  to  Government agencies or in the open market whichever is advantageous to them.

During kharif season of 2017-18, Government has procured 305.73 lakh tonnes of rice and payment of Rs. 42,293.30 crore has been made to farmers. During this season, quantity of 21.14 lakh tonnes of pulses and oilseeds has been procured at MSP valuing at Rs. 10,328.92 crore till 08.03.2018.

(d): Government is implementing e-National  Agriculture  Market  (e-NAM)  for  market  reform and  to  provide  remunerative  prices  to  farmers.  This  scheme  was  approved  with  a  budget allocation  of  Rs.  200  crore  upto  2017-18.  Government  has  enacted  Model  Contract  Farming Act,  2018  in  order  to  protect  and  promote  the  interests  (land  ownership,  higher  productivity, reduced cost, higher price returns) of the farmers.

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