Lok Sabha Question No. 42 (STARRED), answered on 2017-12-19
Subject: Increase in Minimum Support Price
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: M. B. RAJESH, SUSHMITA DEV

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

## LOK  SABHA STARRED QUESTION NO. 42

TO BE ANSWERED ON THE 19 TH  DECEMBER, 2017

## INCREASE IN MINIMUM SUPPORT PRICE

- *42.    SHRI M.B. RAJESH: KUMARI SUSHMITA DEV:

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

- (a) whether the Union Government has recently announced an increase in the Minimum Support Price (MSP) of wheat, pulses and oilseeds;
- (b) if  so, the details thereof along with the details of the increase in Minimum Support Price of various agricultural produce during the last three years, crop-wise;
- (c) the  criteria/formula  adopted  in  increasing  the  MSP  of  wheat,  pulses  and  oilseeds and the reaction of farmers/farmers' federations on the increase of MSP of wheat, pulses and oilseeds;
- (d) whether some State Governments have urged the Union Government to review the increase  in  MSP  of  wheat,  pulses  and  oilseeds  in  line  with  the  recommendations  of  the Swaminathan Commission's report; and
- (e) if  so,  the  details  thereof  along  with  the  action  taken  by  the  Government  in  this regard?

## ANSWER

## MINISTER OF AGRICULTURE AND FARMERS WELFARE

कृ ष एवं कसान कयाण ½ãâ¨ããè (SHRI RADHA MOHAN SINGH) (a) to (e): A statement is laid on the Table of the House.

## STATEMENT REFERRED TO IN REPLY TO PARTS (a) TO (e) OF LOK SABHA STARRED QUESTION NO. 42    DUE FOR REPLY ON 19 TH     DECEMBER, 2017.

- (a): Government  has  increased  the  Minimum  Support  Prices  (MSPs)  of  Rabi  crops including wheat, pulses and oilseeds for 2017-18 on 24 th October 2017.
- (b): For Rabi crops 2017-18, the Government has increased the MSP of wheat to Rs. 1735 per quintal in 2017-18 as compared to Rs. 1625 per quintal in 2016-17.  For Barley, MSP has been increased to Rs. 1410 per quintal for 2017-18 from Rs. 1325 per quintal in 2016-17. For Gram the MSP has been increased to Rs. 4400 (including a bonus of Rs. 150 per quintal) for 2017-18 from Rs. 4000 per quintal in 2016-17. For Masur, MSP has been increased to Rs. 4250 per  quintal  (including  a  bonus  of  Rs.  100  per  quintal)  in  2017-18  from  Rs.  3950  per quintal in 2016-17. For Rapeseed/Mustard MSP has been increased to Rs. 4000 per quintal (including a bonus of Rs. 100 per quintal) in 2017-18 from Rs. 3700 per quintal in 2016-17. Similarly, MSP of Safflower has been increased to Rs. 4100 per quintal (including a bonus of Rs. 100 per quintal) in 2017-18 from Rs. 3700 per quintal in 2016-17.  Details of MSPs fixed by the Government and increase in MSPs during the last three years are at Annexure.
- (c): The decision to increase MSPs is based on the recommendations of Commission for Agricultural Costs and Prices (CACP). While recommending MSPs, CACP takes into account the  cost  of  production,  overall  demand-supply,  domestic  and  international  prices,  inter-crop price parity, terms of trade between agricultural and non-agricultural sectors, the likely effect on the rest of the economy, besides ensuring rational utilization of production resources like land  and  water.    CACP  also  holds  consultations  with  various  stakeholders  including  State governments and farmers' representatives before finalizing its recommendations.

-2-

(d) & (e): Government  fixes  Minimum  Support  Prices  (MSPs)  for  22  major  agricultural crops  viz.  Paddy,  Jowar,  Bajra,  Maize,  Ragi,  Arhar,  Moong,  Urad,  Groundnut-in-shell, Soyabean,  Sunflower,  Sesamum,  Nigerseed,  Cotton,  Wheat,  Barley,  Gram,  Masur  (Lentil), Rapeseed/Mustard,  Safflower,  Jute  and  Copra  and  Fair  &  Remunerative  Price  (FRP)  for Sugarcane on the basis of the recommendations of the Commission for Agricultural Costs & Prices (CACP), after obtaining the views of State Governments and Central Ministries/Departments and other relevant factors. No specific recommendation to review the increase  in  MSP  of  wheat,  pulses  and  oilseeds  in  line  with  Swaminathan  Commission recommendations were received from the State governments on the recommendations of the CACP for Rabi crops of 2017-18.

*****

## ANNEXURE

## Annexure referred to in reply to part (b) of Lok Sabha Starred Question No. 42 due for reply on 19.12.2017.

## Minimum Support Prices (MSPs) and increase in MSP

| Sl. No.   | Commodity                         | Variety       | 2014-15   | 2015-16   | (#) increase in MSP 2015-16 over 2014-15   | 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        | 1360      | 1410      | 50(3.7)                                    | 1470      | 60(4.3)                                    | 1550      | 80(5.4)                                     |
|           |                                   | Grade 'A'     | 1400      | 1450      | 50(3.6)                                    | 1510      | 60(4.1)                                    | 1590      | 80(5.3)                                     |
| 2         | JOWAR                             | Hybrid        | 1530      | 1570      | 40(2.6)                                    | 1625      | 55(3.5)                                    | 1700      | 75(4.6)                                     |
|           |                                   | Maldandi      | 1550      | 1590      | 40(2.6)                                    | 1650      | 60(3.8)                                    | 1725      | 75(4.5)                                     |
| 3         | BAJRA                             |               | 1250      | 1275      | 25(2.0)                                    | 1330      | 55(4.3)                                    | 1425      | 95(7.1)                                     |
| 4         | MAIZE                             |               | 1310      | 1325      | 15(1.1)                                    | 1365      | 40(3.0)                                    | 1425      | 60(4.3)                                     |
| 5         | RAGI                              |               | 1550      | 1650      | 100(6.5)                                   | 1725      | 75(4.5)                                    | 1900      | 175(10.1)                                   |
| 6         | ARHAR(Tur)                        |               | 4350      | 4625^     | 275(6.3)                                   | 5050^^    | 425(9.2)                                   | 5450^     | 400(7.9)                                    |
| 7         | MOONG                             |               | 4600      | 4850^     | 250(5.4)                                   | 5225^^    | 375(7.7)                                   | 5575^     | 350(6.7)                                    |
| 8         | URAD                              |               | 4350      | 4625^     | 275(6.3)                                   | 5000^^    | 375(8.1)                                   | 5400^     | 400(8)                                      |
| 9         | COTTON                            | Medium Staple | 3750      | 3800      | 50(1.3)                                    | 3860      | 60(1.6)                                    | 4020      | 160(4.1)                                    |
|           |                                   | Long Staple   | 4050      | 4100      | 50(1.2)                                    | 4160      | 60(1.5)                                    | 4320      | 160(3.8)                                    |
| 10        | GROUNDNUT IN SHELL                |               | 4000      | 4030      | 30(0.8)                                    | 4220*     | 190(4.7)                                   | 4450^     | 230(5.5)                                    |
| 11        | SUNFLOWER SEED                    |               | 3750      | 3800      | 50(1.3)                                    | 3950*     | 150(3.9)                                   | 4100*     | 150(3.8)                                    |
| 12        | SOYABEEN                          |               | 2560      | 2600      | 40(1.6)                                    | 2775*     | 175(6.7)                                   | 3050^     | 275(9.9)                                    |
| 13        | SESAMUM                           |               | 4600      | 4700      | 100(2.2)                                   | 5000^     | 300(6.4)                                   | 5300*     | 300(6)                                      |
| 14        | NIGERSEED                         |               | 3600      | 3650      | 50(1.4)                                    | 3825*     | 175(4.8)                                   | 4050*     | 225(5.9)                                    |
|           | RABI CROPS                        |               |           |           |                                            |           |                                            |           |                                             |
| 15        | WHEAT                             |               | 1450      | 1525      | 75(5.2)                                    | 1625      | 100(6.6)                                   | 1735      | 110(6.8)                                    |
| 16        | BARLEY                            |               | 1150      | 1225      | 75(6.5)                                    | 1325      | 100(8.2)                                   | 1410      | 85(6.4)                                     |
| 17        | GRAM                              |               | 3175      | 3500**    | 325(10.2)                                  | 4000^     | 500(14.3)                                  | 4400@     | 400(10.0)                                   |
| 18        | MASUR (LENTIL)                    |               | 3075      | 3400**    | 325(10.6)                                  | 3950@     | 550(16.2)                                  | 4250*     | 300(7.6)                                    |
| 19        | RAPESEED/MUSTARD                  |               | 3100      | 3350      | 250(8.0)                                   | 3700*     | 350(10.4)                                  | 4000*     | 300(8.1)                                    |
| 20        | SAFFLOWER                         |               | 3050      | 3300      | 250(8.2)                                   | 3700*     | 400(12.1)                                  | 4100*     | 400(10.8)                                   |
| 21        | TORIA                             |               | 3020      | 3290      | 270(8.9)                                   | 3560      | 270(8.2)                                   |           |                                             |
|           | OTHER CROPS                       |               |           |           |                                            |           |                                            |           |                                             |
| 22        | COPRA                             | Milling       | 5250      | 5550      | 300(5.7)                                   | 5950      | 400(7.2)                                   | 6500      | 550(9.2)                                    |
|           | (Calender Year)                   | Ball          | 5500      | 5830      | 330(6.0)                                   | 6240      | 410(7.0)                                   | 6785      | 545(8.7)                                    |
| 23        | DE-HUSKED COCONUT (Calender Year) |               | 1425      | 1500      | 75(5.3)                                    | 1600      | 100(6.7)                                   | 1760      | 160(10)                                     |
| 24        | JUTE                              |               | 2400      | 2700      | 300(12.5)                                  | 3200      | 500(18.5)                                  | 3500      | 300(9.3)                                    |
| 25        | SUGARCANE$                        |               | 220.00    | 230.00    | 10(4.5)                                    | 230.00    | 0                                          | 255       | 25(10.9)                                    |

- # 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

(Rs. per quintal)