Lok Sabha Question No. 3659 (UNSTARRED), answered on 2017-08-08
Subject: Support Price of Crops
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: SATYA PAL SINGH

O.I.H.

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

## LOK  SABHA UNSTARRED QUESTION NO.3659

TO BE ANSWERED ON THE  8 TH  AUGUST, 2017

## SUPPORT PRICE OF CROPS

3659.  SHRI SATYAPAL SINGH:

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

- (a) whether support price of the crops is fixed keeping in mind the value of farmers holding cost involving ploughing and irrigation, labour of farmer and all other relevant factors;
- (b) if so, the details thereof; and
- (c) the steps taken by the Government to provide remunerative prices to the farmers for their produce?

## 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) to (c): Government fixes the  Minimum  Support Prices (MSPs)  of  various  crops on the recommendations of the Commission for Agricultural Costs & Prices (CACP), the views  of  concerned  State  Governments  and  Central  Ministries/Departments.  While formulating  its  recommendations  on  price  policy,  the  CACP  considers,  inter  alia,  a number of important factors which include cost of production, trends in market prices, demand and supply situation, effect on general price level, effect on cost of living etc. The cost of production, inter alia, includes all paid out costs such as those incurred on account of hired human labour, bullock labour/machine labour, rent paid for leased in land,  expenses  incurred  on  use  of  material  inputs  like  seeds,  fertilizers,  manures, irrigation charges, diesel/electricity for operation of pump sets etc. and imputed value of family labour (A2+FL).

The  Government  offers  to  procure  the  agricultural  produce  through  procurement agencies at MSP. However, farmers are free to sell their produce to Government procurement agencies at MSP or in the open market as is advantageous to them.

In  addition,  Government  has  taken  several  steps  to  ensure  MSP  for  all agricultural produce which inter alia includes setting up of procurement centre keeping in view the potential in the areas; creating awareness among the farmers of the MSP operations;  making  payment  through  arthias/co-operative  societies  to  the  farmers through  A/c  payee  cheque/electronic  mode  as  per  prevailing  situation  in  the  states; encouraging  decentralized  procurement;  adopting  e-procurement  system;  engaging private players in certain States to participate in procurement operations etc.

Government  has  also  launched  a  scheme  developing  a  pan  India  electronic trading  platform  under  'National  Agriculture  Market'  (NAM)  aiming  to  integrate  585 regulated markets with the common e-market platform to ensure remunerative prices to the farmers.  Each State is being encouraged to undertake three major reforms - allow electronic  trading,  have a single license valid throughout the State and a single entry point market fee.

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