Lok Sabha Question No. 1485 (UNSTARRED), answered on 2017-07-25
Subject: Remunerative Price to Farmers
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: RAMSINH PATALYABHAI RATHWA

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

## LOK  SABHA UNSTARRED QUESTION NO.1485

TO BE ANSWERED ON THE 25 TH  JULY, 2017

## REMUNERATIVE PRICE TO FARMERS

1485.      SHRI RAMSINH RATHWA:

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

- (a) whether farmers have received remunerative price for their produce  under the agricultural price policy keeping in view the high inflation during each of the last three years and the current year;
- (b) if so, the details thereof, State-wise and if not, the reasons therefor;
- (c) whether the Price Support Scheme for procurement of oilseeds, pulses and cotton has been implemented across the country, if so, the details of procurement under the said scheme when prices of agricultural produce fell below MSP during the said period; and
- (d) the other corrective steps taken by the Government to provide adequate price to farmers for their produce?

## 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) & (b): With a view to ensure  remunerative  prices to farmers  for their  produce, Government fix Minimum Support Prices (MSPs) based on the recommendation of Commission for Agricultural Costs & Prices (CACP), views of the concerned State Governments and Central Ministries/Departments and other relevant factors.  The MSP provide adequate returns over all India weighted average all paid out costs including family labour (A2+FL) as estimated by the CACP.  However,  farmers  are  free  to  sell  their  produce  to  the  Government  procurement agencies at MSP or in the open market as is advantageous to them. Government increased the MSP of both Rabi and Kharif crops for  2016-17  season  and has  also  increased  the  MSP  of Kharif  crops  for  2017-18  season.  A  statement  of  MSP  of  various  crops  for  last  three  year  is enclosed at Annexure-I. MSP is determined for the country as a whole and not region or statespecific.
- (c): Yes, Madam. The details of procurement made under Price Support Scheme (PSS) is at Annexure-II.
- (d): Government also undertake procurement of paddy and wheat at MSP through FCI and pulses under PSF through NAFED, SFAC & FCI. The Central Government has removed pulses from the list on which stock limit can be imposed by states and also increased the import duty imposed on various pulses to discourage cheap import. Besides this, Government also provides remunerative price for agricultural/horticultural commodities, which are perishable in nature and not covered under the MSP regime, through Market Intervention Scheme (MIS).

## M I N I M U M   S U P P O R T   P R I C E S

## (According to crop year)

## ANNEXURE-I

(As on 09.06.2017)

(Rs. per quintal)

| Sl. No.   | Commodity                         | Variety       | 2015-16   | 2016-17   | (#) increase in MSP 2016-17 over 2015-16   | 2017-18   | (#) increase in MSP 2017- 18 over 2016- 17   |
|-----------|-----------------------------------|---------------|-----------|-----------|--------------------------------------------|-----------|----------------------------------------------|
|           | KHARIF CROPS                      |               |           |           |                                            |           |                                              |
| 1         | PADDY                             | Common        | 1410      | 1470      | 60(4.3)                                    | 1550      | 80(5.4)                                      |
|           |                                   | Grade 'A'     | 1450      | 1510      | 60(4.1)                                    | 1590      | 80(5.3)                                      |
| 2         | JOWAR                             | Hybrid        | 1570      | 1625      | 55(3.5)                                    | 1700      | 75(4.6)                                      |
|           |                                   | Maldandi      | 1590      | 1650      | 60(3.8)                                    | 1725      | 75(4.5)                                      |
| 3         | BAJRA                             |               | 1275      | 1330      | 55(4.3)                                    | 1425      | 95(7.1)                                      |
| 4         | MAIZE                             |               | 1325      | 1365      | 40(3.0)                                    | 1425      | 60(4.3)                                      |
| 5         | RAGI                              |               | 1650      | 1725      | 75(4.5)                                    | 1900      | 175(10.1)                                    |
| 6         | ARHAR(Tur)                        |               | 4625^     | 5050^^    | 425(9.2)                                   | 5450^     | 400(7.9)                                     |
| 7         | MOONG                             |               | 4850^     | 5225^^    | 375(7.7)                                   | 5575^     | 350(6.7)                                     |
| 8         | URAD                              |               | 4625^     | 5000^^    | 375(8.1)                                   | 5400^     | 400(8)                                       |
| 9         | COTTON                            | Medium Staple | 3800      | 3860      | 60(1.6)                                    | 4020      | 160(4.1)                                     |
|           |                                   | Long Staple   | 4100      | 4160      | 60(1.5)                                    | 4320      | 160(3.8)                                     |
| 10        | GROUNDNUT IN SHELL                |               | 4030      | 4220*     | 190(4.7)                                   | 4450^     | 230(5.5)                                     |
| 11        | SUNFLOWER SEED                    |               | 3800      | 3950*     | 150(3.9)                                   | 4100*     | 150(3.8)                                     |
| 12        | SOYABEEN                          |               | 2600      | 2775*     | 175(6.7)                                   | 3050^     | 275(9.9)                                     |
| 13        | SESAMUM                           |               | 4700      | 5000^     | 300(6.4)                                   | 5300*     | 300(6)                                       |
| 14        | NIGERSEED                         |               | 3650      | 3825*     | 175(4.8)                                   | 4050*     | 225(5.9)                                     |
|           | RABI CROPS                        |               |           |           |                                            |           |                                              |
| 15        | WHEAT                             |               | 1525      | 1625      | 100(6.6)                                   |           |                                              |
| 16        | BARLEY                            |               | 1225      | 1325      | 100(8.2)                                   |           |                                              |
| 17        | GRAM                              |               | 3500**    | 4000^     | 500(14.3)                                  |           |                                              |
| 18        | MASUR (LENTIL)                    |               | 3400**    | 3950@     | 550(16.2)                                  |           |                                              |
| 19        | RAPESEED/MUSTARD                  |               | 3350      | 3700*     | 350(10.4)                                  |           |                                              |
| 20        | SAFFLOWER                         |               | 3300      | 3700*     | 400(12.1)                                  |           |                                              |
| 21        | TORIA                             |               | 3290      | 3560      | 270(8.2)                                   |           |                                              |
|           | OTHER CROPS                       |               |           |           |                                            |           |                                              |
| 22        | COPRA                             | Milling       | 5550      | 5950      | 400(7.2)                                   | 6500      | 550(9.2)                                     |
|           | (Calender Year)                   | Ball          | 5830      | 6240      | 410(7.0)                                   | 6785      | 545(8.7)                                     |
| 23        | DE-HUSKED COCONUT (Calender Year) |               | 1500      | 1600      | 100(6.7)                                   | 1760      | 160(10)                                      |
| 24        | JUTE                              |               | 2700      | 3200      | 500(18.5)                                  | 3500      | 300(9.3)                                     |
| 25        | SUGARCANE$                        |               | 230.00    | 230.00    | -                                          | 255       | 25(10.9)                                     |

- # Figures in brackets indicate percentage increase.
- $ Fair and remunerative price.
* Including Bonus of Rs. 100 per quintal.
- ** Including Bonus of Rs. 75 per quintal .
- ^ Including Bonus of Rs. 200 per quintal.
- ^^ Including Bonus of Rs. 425 per quintal.
- @ Including Bonus of Rs. 150 per quintal

## ANNEXURE-II

## DETAILS OF PROCUREMENT MADE BY NAFED UNDER PSS FROM 2014-15 TO 2017-18

| YEAR    | PSS OPERATIONS/ COMMODITIES   | STATE          |   QUANTITY (IN MTs) | MSP (PMT)   |   MSP COST (IN LAKH Rs.) |
|---------|-------------------------------|----------------|---------------------|-------------|--------------------------|
| 2014-15 | MUSTARD SEED RABI 2014        | RAJASTHAN      |             1714.82 | 30,500.00   |                   523.02 |
| 2014-15 | GROUNDNUT PODS RABI 2014      | ODISHA         |             6229.81 | 40,000.00   |                  2491.92 |
| 2014-15 | SUNFLOWER SEED RABI 2014      | ODISHA         |              338.75 | 37,000.00   |                   125.34 |
| 2014-15 | SUNFLOWER SEED RABI 2014      | HARYANA        |             3814.46 | 37,000.00   |                  1411.35 |
| 2014-15 | SUNFLOWER SEED RABI 2014      | TOTAL          |             4153.21 | 37,000.00   |                  1536.69 |
|         | GRAM RABI 2014                | MAHARASHTRA    |            31012.2  | 31,000.00   |                  9613.78 |
|         | GRAM RABI 2014                | GUJARAT        |             3730.56 | 31,000.00   |                  1156.47 |
|         | GRAM RABI 2014                | MADHYA PRADESH |            37760.4  | 31,000.00   |                 11705.7  |
|         | GRAM RABI 2014                | UTTAR PRADESH  |             2297.15 | 31,000.00   |                   712.12 |
|         | GRAM RABI 2014                | RAJASTHAN      |           179352    | 31,000.00   |                 55599    |
|         | GRAM RABI 2014                | ANDHRA PRADESH |            45666.8  | 31,000.00   |                 14156.7  |
|         | GRAM RABI 2014                | KARNATAKA      |            14098.6  | 31,000.00   |                  4370.57 |
|         | GRAM RABI 2014                | TOTAL          |           313917    | 31,000.00   |                 97314.4  |
| 2015-16 | SUNFLOWER SEED RABI 2015      | ODISHA         |               76.02 | 37,500.00   |                    28.51 |
| 2015-16 | SUNFLOWER SEED RABI 2015      | HARYANA        |             4165.87 | 37,500.00   |                  1562.2  |
| 2015-16 | SUNFLOWER SEED RABI 2015      | TOTAL          |             4241.89 | 37,500.00   |                  1590.71 |

| YEAR    | PSS OPERATIONS/ COMMODITIES   | STATE          | QUANTITY (IN MTs)   | MSP (PMT)   | MSP COST (IN LAKH Rs.)   |
|---------|-------------------------------|----------------|---------------------|-------------|--------------------------|
| 2016-17 | SUNFLOWER SEED RABI 2016      | ODISHA         | 164.56              | 38,000.00   | 62.53                    |
| 2016-17 |                               | HARYANA        | 4784.708            |             | 1818.21                  |
| 2016-17 |                               | TOTAL          | 4949.268            |             | 1880.74                  |
| 2016-17 | Milling Copra 2016            | TAMIL NADU     | 1170.443            | 59500.00    | 696.41                   |
| 2016-17 | Milling Copra 2016            | ANDHRA PRADESH | 3318.500            | 59500.00    | 1974.51                  |
| 2016-17 | Milling Copra 2016            | TOTAL          | 4488.943            | 59500.00    | 2670.92                  |
| 2016-17 | Ball copra                    | TAMIL NADU     | 0.459               | 62400.00    | 0.29                     |
| 2016-17 | Ball copra                    | KARNATAKA      | 1835.00             | 62400.00    | 1145.04                  |
| 2016-17 | Ball copra                    | TOTAL          | 1835.459            | 62400.00    | 1145.33                  |
| 2016-17 | Ground nut pods 2016          | GUJARAT        | 210731.16           | 42200.00    | 88928.55                 |
| 2016-17 | MOONG K-16                    | MAHARASHTRA    | 6430.28             | 52250.00    | 3359.82                  |
| 2016-17 |                               | KARNATAKA      | 1837.30             | 52250.00    | 959.99                   |
| 2016-17 |                               | TOTAL          | 8267.58             | 52250.00    | 4319.81                  |
| 2016-17 | SOYABEAN                      | MAHARASHTRA    | 163.81              | 27750.00    | 45.46                    |
| 2016-17 | TOOR                          | GUJARAT        | 49797.10            | 50500.00    | 25147.54                 |
| 2016-17 | TOOR                          | MAHARASHTRA    | 115276.03           | 50500.00    | 58214.40                 |
| 2016-17 | TOOR                          | KARNATAKA      | 30920.55            | 50500.00    | 15614.88                 |
| 2016-17 | TOOR                          | TOTAL          | 195993.68           | 50500.00    | 98976.82                 |
| 2017-18 | GREEN GRAM                    | ODISHA         | 819.54              | 52250.00    | 428.21                   |
| 2017-18 | MUSTARD                       | HARYANA        | 37648.77            | 37000.00    | 13930.04                 |
| 2017-18 | SUNFLOWER                     | TELANGANA      | 112.10              | 37000.00    | 44.28                    |
| 2017-18 | SUNFLOWER (AS ON 18.07.2017)  | HARYANA        | 4358.712            | 39500.00    | 1721.691                 |
| 2017-18 | SUNFLOWER                     | ODISHA         |                     | 39500.00    |                          |
| 2017-18 | SUMMER URAD                   | MADHYA PRADESH | 12463.95            | 50000.00    | 6231.98                  |
| 2017-18 | SUMMER MOONG                  | MADHYA PRADESH | 111000.00           | 52250.00    | 57997.50                 |
| 2017-18 |                               | ODISHA         | 1405.99             | 52250.00    | 734.63                   |
| 2017-18 |                               | TOTAL          | 112405.99           | 52250.00    | 58732.13                 |

Procurement made by SFAC under PSS from 2014-15 to 2017-18

|   S. No | Commodity     | State          |   Procured quantity (in MTs) | Minimum Support Price (MSP) for FAQ (in Rs. Per MTs)   |   Procurement value (in lakh Rs.) |
|---------|---------------|----------------|------------------------------|--------------------------------------------------------|-----------------------------------|
|       1 | Chana 2014-15 | Madhya Pradesh |                      7904.2  | 31,000.00                                              |                           2450.3  |
|       1 | Chana 2014-15 | Maharashtra    |                     32141    | 31,000.00                                              |                           9963.77 |
|       1 | Chana 2014-15 | Rajasthan      |                      8173.95 | 31,000.00                                              |                           2533.92 |
|       1 | Chana 2014-15 | Karnataka      |                      1502.3  | 31,000.00                                              |                            465.71 |
|       1 | Chana 2014-15 | Gujarat        |                       365.55 | 31,000.00                                              |                            113.32 |
|       1 | Chana 2014-15 | Andhra Pradesh |                       202.45 | 31,000.00                                              |                             62.76 |
|       1 | Chana 2014-15 | TOTAL          |                     50289.7  | 31,000.00                                              |                          15589.8  |
|       2 | Moong K-2016  | Karnataka      |                       679.9  | 52,250.00                                              |                            355.25 |
|       2 | Moong K-2016  | Maharashtra    |                       548    | 52,250.00                                              |                            286.35 |
|       2 | Moong K-2016  | TOTAL          |                      1227.9  | 52,250.00                                              |                            641.6  |

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