Lok Sabha Question No. 388 (UNSTARRED), answered on 2017-07-18
Subject: Procurement of Agricultural Produce at MSP
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: M. B. RAJESH

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

## LOK  SABHA UNSTARRED QUESTION NO.388

TO BE ANSWERED ON THE 18 TH  JULY, 2017

## PROCUREMENT OF AGRICULTURAL PRODUCE AT MSP

388.   SHRI M.B. RAJESH:

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

- (a) the details of the procurement of agricultural produce by Food Corporation of India (FCI) and  National  Agricultural  Cooperative  Marketing  Federation  of  India  (NAFED)  at  Minimum Support Price (MSP) during the last three years;
- (b) the number of agricultural products covered under the Minimum Support Price (MSP);
- (c) whether the Government proposes to ensure MSP at 50% more than the comprehensive production costs established by CACP, if so, the details thereof;
- (d) whether the Government proposes to pass the legislation to protect the farmers right to sell their produce at MSP and also to ensure an annual automatic review of MSP; and
- (e) if so, the details thereof?

## 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): The details of the procurement of agricultural produce by Food Corporation of India (FCI) and  National  Agricultural  Cooperative  Marketing  Federation  of  India  (NAFED)  at  Minimum Support  Price  (MSP)  during  the  last  three  years  are  placed  at  Annexure-I  and  Annexure-II respectively.
- (b): There are 25 agricultural products which are covered under the Minimum Support Price (MSP).
- (c): The National Commission on Farmers under the Chairmanship of Prof. M.S. Swaminathan had recommended that the MSP should be at least 50% more than the weighted average  costs  of  production.  MSP  is  recommended  by  the  CACP  based  on  various  factors including  cost  of  cultivation.    The  CACP  also  includes  a  certain  profit  margin  on  the  A2+FL (family  labour)  cost.    A2  cost  includes  all  paid  out  costs.    Government  considers  the  MSP recommended by CACP and notifies the same.

As regards recommendation of National Commission on Farmers (NCF) to fix 50% as profit  margin  on  C2  cost,  the  Department  has  shared  certain  issues  with  M.S.  Swaminathan Research Foundation (MSSRF), and sought for comments.

(d) & (e): MSP  is notified by the Government  on various Kharif and Rabi crops. Government's aim is to help farmers realise prices  higher  than  MSP  in  the market.    For this purpose, Government has been focussing on creating an efficient marketing system.  Towards this,  the  Government  has  shared  a  Model  Agricultural  Produce  and  Livestock  Marketing (Promotion & Facilitation) Act, 2017 with the States & UTs.  This will encourage more number of markets  and  enhance  competition.    The  Government  is  also  aiming  at  creating  a  unified National Agriculture Market (eNAM) by promoting market integration through online trade.

However, there can still be situations where prices in the market rule below MSP.  This is addressed  through  the  instrument  of  Price  Support  Scheme  (PSS)  and  Market  Intervention Scheme (MIS).  Under these schemes, procurement is undertaken based on the requests of the State Governments.  While PSS covers non-perishable commodities like pulses & oilseeds, MIS covers perishables.

## Annexure - I

## Rice Procurement by FCI from 2014-15 to 2016-17 (Marketing season wise) (Figures in lakh tons)

|                   | 2014-15   | 2015-16   | 2016-17      |
|-------------------|-----------|-----------|--------------|
| STATE / UT        |           |           | Actual Proc. |
| ANDHRA PRADESH    | 35.96     | 43.36     | 37.11        |
| TELANGANA         | 35.04     | 15.79     | 35.92        |
| ASSAM             | 0.15      | 0.42      | 0.41         |
| BIHAR             | 16.14     | 12.23     | 12.34        |
| CHANDIGARH        | 0.10      | 0.16      | 0.13         |
| CHHATISGARH       | 34.23     | 34.42     | 46.62        |
| DELHI             | 0.00      | 0.00      | 0.00         |
| GUJARAT           | 0.00      | 0.01      | 0.01         |
| HARYANA           | 20.15     | 28.61     | 35.83        |
| HIMACHAL PRADESH  | 0.00      | 0.00      | 0.00         |
| JAMMU & KASHMIR   | 0.00      | 0.07      | 0.00         |
| JHARKHAND         | 0.06      | 2.06      | 1.39         |
| KARNATAKA         | 0.88      | 0.55      | 0.00         |
| KERALA            | 3.74      | 3.82      | 3.08         |
| MADHYA PRADESH    | 8.07      | 8.49      | 13.14        |
| MAHARASHTRA       | 1.99      | 2.30      | 3.06         |
| NAGALAND          | 0.00      | 0.00      | 0.00         |
| ODISHA            | 33.57     | 33.69     | 35.70        |
| PONDICHERRY       | 0.00      | 0.00      | 0.00         |
| PUNJAB            | 77.86     | 93.50     | 110.52       |
| RAJASTHAN         | 0.00      | 0.00      | 0.00         |
| TAMIL NADU        | 10.51     | 11.92     | 1.41         |
| UTTAR PRADESH     | 16.98     | 29.10     | 23.54        |
| UTTRAKHAND        | 4.65      | 5.98      | 7.06         |
| WEST BENGAL       | 20.32     | 15.68     | 19.18        |
| Others            | 0.00      | 0.00      | 0.10         |
| ALL INDIA TOTAL : | 320.40    | 342.17    | 386.55       |

## Wheat Procurement for Central Pool by FCI for the last three years (Marketing season wise)

(Figures in lakh tons)

| S.No.   | STATES/UTs       |   2014-15 |   2015-16 |   2016-17 |   2017-18* |
|---------|------------------|-----------|-----------|-----------|------------|
| 1.      | Punjab           |    116.41 |    103.44 |    106.49 |     117.05 |
| 2.      | Haryana          |     64.95 |     67.78 |     67.52 |      74.11 |
| 3.      | Uttar Pradesh    |      6.28 |     22.67 |      7.97 |      36.99 |
| 4.      | Uttarakhand      |      0.01 |      0.04 |      0.02 |       0.02 |
| 5.      | Madhya Pradesh   |     70.94 |     73.09 |     39.92 |      67.24 |
| 6.      | Gujarat          |      0    |      0.73 |      0    |       0.06 |
| 7.      | Rajasthan        |     21.59 |     13    |      7.62 |      12.45 |
| 8.      | Bihar            |      0    |      0    |      0    |       0    |
| 9.      | Jharkhand        |      0    |      0    |      0    |       0    |
| 10.     | Karnataka        |      0    |      0    |      0    |       0    |
| 11.     | Delhi            |      0    |      0.02 |      0    |       0    |
| 12.     | Jammu & Kashmir  |      0    |      0    |      0    |       0    |
| 13.     | Maharashtra      |      0    |      0    |      0    |       0    |
| 14.     | Odisha           |      0    |      0    |      0    |       0    |
| 15.     | Himachal Pradesh |      0    |      0.11 |      0    |       0    |
| 16.     | Chandigarh       |      0.05 |      0    |      0.07 |       0.08 |
| 17.     | West Bengal      |      0    |      0    |      0    |       0    |
| 18.     | Chhattisgarh     |      0    |      0    |      0    |       0    |
| 19.     | Andhra Pradesh   |      0    |      0    |      0    |       0    |
| 20.     | Assam            |      0    |      0    |      0    |       0    |
| 21.     | Telangana        |      0    |      0    |      0    |       0    |
| 22.     | Others           |      0    |      0.04 |      0    |       0    |
|         | Total :          |    280.23 |    280.88 |    229.3  |     308    |

*  As on 03.07.2017

## Procurement details of pulses at MSP made by FCI under PSF during last three years

|   Sl. No. | YEAR    | PSS OPERATIONS/ COMMODITIES   |   QUANTITY (IN MTs) |   MSP PMT (`) |
|-----------|---------|-------------------------------|---------------------|---------------|
|         1 | 2016-17 | MOONG                         |             64737.2 |         52250 |
|         2 | (KMS)   | TUR                           |            175299   |         50500 |

## Annexure - I I NAFED/NEW DELHI

State -wise procurement of  Pulses  by NAFED under PSS and PSF at MSP during the year 2014-15 to 2017-18      (As on 10.07.2017)

## Qty. in MTs / Value in Rs.Lakh

| Year    | Scheme   | Commodity     | State          | Quantity   | Average Rate of Procurement Rate / MSP (P.Q)   | Loose Value   |
|---------|----------|---------------|----------------|------------|------------------------------------------------|---------------|
| 2014-15 |          | GRAM K-15     | MAHARASHTRA    | 31012.19   | 3100                                           | 9613.78       |
| 2014-15 |          | GRAM K-15     | GUJARAT        | 3730.56    | 3100                                           | 1156.47       |
| 2014-15 |          | GRAM K-15     | MADHYA PRADESH | 37760.39   | 3100                                           | 11705.72      |
| 2014-15 |          | GRAM K-15     | UTTAR PRADESH  | 2297.15    | 3100                                           | 712.12        |
| 2014-15 | PSS      | GRAM K-15     | RAJASTHAN      | 179351.61  | 3100                                           | 55587.75      |
| 2014-15 |          | GRAM K-15     | ANDHRA PRADESH | 45666.85   | 3100                                           | 14156.72      |
| 2014-15 |          | GRAM K-15     | KARNATAKA      | 14098.60   | 3100                                           | 4370.57       |
| 2014-15 |          | GRAM K-15     | TOTAL          | 313917.34  |                                                | 97303.13      |
| 2015-16 | NIL      | NIL           | NIL            | NIL        | NIL                                            | NIL           |
|         |          | MOONG K- 2016 | MAHARASHTRA    | 6430.28    | 4800+425                                       | 3359.82       |
|         | PSS      | MOONG K- 2016 | KARNATAKA      | 1837.30    | 4800+425                                       | 959.99        |
|         |          | MOONG K- 2016 | TOTAL          | 8267.58    |                                                | 4319.81       |
|         |          | TOOR K-16     | GUJARAT        | 49797.10   | 4625+425                                       | 25147.54      |
|         |          | TOOR K-16     | MAHARASHTRA    | 115276.03  | 4625+425                                       | 58214.40      |
|         | PSS      | TOOR K-16     | KARNATAKA      | 30920.55   | 4625+425                                       | 15614.88      |
|         |          | TOOR K-16     | TOTAL          | 195993.68  |                                                | 98976.81      |
| 2016-17 | PSF      | MOONG K- 16   | RAJASTHAN      | 114605.23  | 4800+425                                       | 59881.23      |
| 2016-17 |          | MOONG K- 16   | MADHYA PARDESH | 598.82     | 4800+425                                       | 312.88        |
| 2016-17 |          | MOONG K- 16   | HARYANA        | 1069.35    | 4800+425                                       | 558.74        |
| 2016-17 |          | MOONG K- 16   | ANDHRA PRADESH | 2535.73    | 4800+425                                       | 1324.92       |
| 2016-17 |          | MOONG K- 16   | TELANGANA      | 1809.56    | 4800+425                                       | 945.50        |
| 2016-17 |          | MOONG K- 16   | TOTAL          | 120618.69  |                                                | 63023.27      |
| 2016-17 |          | TOOR K-16     | MAHARASHTRA    | 321278.49  | 4625+425                                       | 162245.64     |
| 2016-17 |          | TOOR K-16     | MADHYA PRADESH | 84555.81   | 4625+425                                       | 42700.68      |
| 2016-17 |          | TOOR K-16     | ANDHRA PRADESH | 54.00      | 4625+425                                       | 27.27         |
| 2016-17 | PSF      | TOOR K-16     | TELANGANA      | 155395.6   | 4625+425                                       | 78474.78      |
| 2016-17 |          | TOOR K-16     | KARNATAKA      | 242922.72  | 4625+425                                       | 122675.97     |
| 2016-17 |          | TOOR K-16     | GUJARAT        | 115460.13  | 4625+425                                       | 58307.37      |
| 2016-17 |          |               | TOTAL          | 919666.75  |                                                | 464431.71     |
| 2017-18 |          | MOONG R-17    | ODISHA         | 1405.99    | 4800+425                                       | 734.63        |
| 2017-18 | PSS      | MOONG R-17    | MADHYA PRADESH | 111000.00  | 4800+425                                       | 57997.50      |
| 2017-18 |          |               | TOTAL          | 112405.99  |                                                | 58732.13      |
| 2017-18 |          | URAD R-17     | MADHYA PRADESH | 12463.95   | 4575+425                                       | 6231.975      |
| 2017-18 | PSS      |               |                |            |                                                |               |

## NAFED/NEW DELHI

## State-wise purchase of oilseeds under PSS during the year 2014-15 to 2017-18

| Commodity                          | State          |   Quantity in MTs | MSP per qtls     |   Value in Lacs |
|------------------------------------|----------------|-------------------|------------------|-----------------|
| Mustard seed R-2014                | RAJASTHAN      |          1714.82  | 3050             |         523.02  |
| Groundnut Pods R-14                | ODISHA         |          6229.81  | 4000             |        2491.92  |
| Sunflower seed R-2014              | ODISHA         |           338.75  | 3700             |         125.34  |
| Sunflower seed R-2014              | HARYANA        |          3814.46  | 3700             |        1411.35  |
| Sunflower seed R-2014              | Total:         |          4153.21  | 3700             |        1536.69  |
| Sunflower seed R-2015              | ODISHA         |            76.019 | 3750             |          28.507 |
| Sunflower seed R-2015              | HARYANA        |          4165.87  | 3750             |        1562.2   |
| Sunflower seed R-2015              | Total:         |          4241.89  | 3750             |        1590.71  |
| Sunflower seed R-2016              | ODISHA         |           164.56  | 3800             |          62.533 |
| Sunflower seed R-2016              | HARYANA        |          4784.75  | 3800             |        1818.21  |
| Sunflower seed R-2016              | Total:         |          4949.31  | 3800             |        1880.74  |
| Milling Copra 2016                 | TAMILNADU      |          1170.44  | 5950             |         696.414 |
| Milling Copra 2016                 | ANDHRA PARDESH |          3318.5   | 5950             |        1974.51  |
| Milling Copra 2016                 | Total:         |          4488.94  | 5950             |        2670.92  |
| Ball Copra 2016                    | TAMILNADU      |             0.459 | 6240             |           0.286 |
| Ball Copra 2016                    | KARNATAKA      |          1836.4   | 6240             |        1145.91  |
| Ball Copra 2016                    | Total:         |          1836.86  | 6240             |        1146.2   |
| Soybean 2016                       | MAHARASHTRA    |           162.192 | 2675+100 (Bonus) |          45.008 |
| G.N. Pods K- 2016                  | GUJARAT        |        210731     | 4120+100 (Bonus) |       88928.6   |
| Mustard Seed R-17                  | Haryana        |         36940.2   | 3600+100 (Bonus) |       13667.9   |
| Sunflower seeds (As on 10.07.2017) | Telangana      |           112.1   | 3850+100 (Bonus) |          44.28  |
| Sunflower seeds (As on 10.07.2017) | Haryana*       |          2964.74  | 3850+100 (Bonus) |        1171.07  |

*  Procurement is in progress.

*****