Lok Sabha Question No. 2265 (UNSTARRED), answered on 2018-07-31
Subject: Increase in MSP
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: Raghu Sharma

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

## LOK  SABHA

## UNSTARRED QUESTION NO.2265

TO BE ANSWERED ON THE  31 ST  JULY, 2018

## INCREASE IN MSP

2265.  DR. RAGHU SHARMA:

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

- (a) the  budget  allocated  by  the  Government  for  the  announcement  made  by  the Government about increasing MSP by 1.5 times for the crops of the farmers, State-wise and the details of action plan formulated by the Government in order to provide benefit of the said announcement to the farmers;
- (b) whether the Government has fixed the cost prices of various agro-products and if so, the details thereof, product-wise;
- (c) whether the Government proposes to provide 1.5 times MSP of the cost on the basis of the same and if so, the details thereof along with the time by which it is likely to be provided to the farmers; and
- (d) whether the Government has formulated any action plan in order to provide relief to the cattle rearers which are more than 40 per cent of the population, if so, the details thereof?

## ANSWER

MINISTER OF  STATE IN THE  MINISTRY OF  AGRICULTURE AND  FARMERS  WELFARE ‡ãðŠãäÓã एवं किसान िल्याण ½ãâ¨ããÊã¾ã ½ãñâ Àã·¾ã ½ãâ¨ããè SINGH SHEKHAWAT)

( SHRI GAJENDRA

(a): In  order  to  provide  benefit  of  announcement  about  increasing  of  Minimum Support Price (MSP) by 1.5 times to farmers, Government extends price support for procurement operations of wheat, rice and coarse grains to the procuring agencies of the  State  Governments  by  reimbursing  the  expenses  on  procurement  of  foodgrains which  includes  MSP  through  allocated  food  subsidy  budget  regularly.  Further,  to ensure  smooth  procurement  of  oilseeds,  pulses  and  cotton  at  MSP,  Government Guarantee has been provided to central procuring agencies (which is revised from time to  time  based  on  the  requirement)  to  undertake  procurement  operations.  However, Budget  is  allocated  for  reimbursement  of  the  losses,  if  any,  incurred  by  Central procuring  agencies.  Under  the  present  procurement  mechanism  of  oilseeds  and pulses,  Central  procuring  agencies  procure  the  notified  agricultural  produce  of  Fair Average Quality (FAQ) at MSP from farmers through concerned State Government as and when market price of these produce fall below the Minimum Support Price (MSP), as per the prescribed guidelines of Price Support Scheme (PSS).

(b) & (c): Government announces Minimum Support Prices (MSPs) for twenty two (22) mandated crops and  Fair and Remunerative Price (FRP) for Sugarcane based on the recommendations of the Commission for Agricultural Costs & Prices (CACP), after considering  the  views  of  State  Governments  and  Central  Ministries/Departments concerned & other  relevant  factors.  The  mandated  crops  are  14  crops  of  the  Kharif season viz., paddy, jowar, bajra, maize, ragi, arhar, moong, urad, groundnut-in-shell, soyabean, sunflower, sesamum, nigerseed and cotton; 6 rabi crops viz., wheat, barley, gram, masur(lentil), rapeseed/mustard and safflower and two other commercial corps viz., jute and copra. In addition, the MSPs of Toria and de-husked coconut are fixed on the  basis  of  the  MSPs  of  rapeseed/mustard  and  copra,  respectively.  Recently, Government has announced the MSP for Kharif 2018-19 season, which is 150 percent of the cost of production. The MSP fixed by Government, cost and returns over all-india weighted    average    cost  of  production  of  crops  for  2017-18  and  2018-19  is  at Annexure-I.

(d): In  order  to  provide  assistance  to  cattle  rearers,  Government  is  implementing 'Dairy  Entrepreneurship  Development  Scheme'.  In  addition,  Government  is  also implementing  following  schemes  for  enhancing  the  milk  production  in  order  to  make milk production more remunerative to farmers of the country:-

- (a)   Rashtriya Gokul Mission.
- (b)   National Dairy Plan-I.
- (c)   National Programme for Dairy Development.

## Cost*, Minimum Support Prices (MSPs) and Return over Cost

## Annexure-I

## (Rs/quintal)

|         | Commodity              | 2017-18   | 2017-18   | 2017-18            | 2018-19   | 2018-19   | 2018-19            |
|---------|------------------------|-----------|-----------|--------------------|-----------|-----------|--------------------|
| Sl. No. | KHARIF CROPS           | Cost      | MSP       | % Return over cost | Cost      | MSP       | % Return over Cost |
| 1       | PADDY(Common)          | 1117      | 1550      | 38.76              | 1166      | 1750      | 50.09              |
|         | (Grade A) ^            |           | 1590      |                    |           | 1770      |                    |
| 2       | JOWAR (Hybrid)         | 1556      | 1700      | 9.25               | 1619      | 2430      | 50.09              |
|         | (Maldandi) ^           |           | 1725      |                    |           | 2450      |                    |
| 3       | BAJRA                  | 949       | 1425      | 50.16              | 990       | 1950      | 96.97              |
| 4       | MAIZE                  | 1044      | 1425      | 36.49              | 1131      | 1700      | 50.31              |
| 5       | RAGI                   | 1861      | 1900      | 2.10               | 1931      | 2897      | 50.01              |
| 6       | ARHAR(Tur)             | 3318      | 5450      | 64.26              | 3432      | 5675      | 65.36              |
| 7       | MOONG                  | 4286      | 5575      | 30.07              | 4650      | 6975      | 50.00              |
| 8       | URAD                   | 3265      | 5400      | 65.39              | 3438      | 5600      | 62.89              |
| 9       | COTTON (Medium Staple) | 3276      | 4020      | 22.71              | 3433      | 5150      | 50.01              |
|         | (Long Staple) ^        |           | 4320      |                    |           | 5450      |                    |
| 10      | GROUNDNUT IN SHELL     | 3159      | 4450      | 40.87              | 3260      | 4890      | 50.00              |
| 11      | SUNFLOWER SEED         | 3481      | 4100      | 17.78              | 3592      | 5388      | 50.01              |
| 12      | SOYABEEN               | 2121      | 3050      | 43.80              | 2266      | 3399      | 50.01              |
| 13      | SESAMUM                | 4067      | 5300      | 30.32              | 4166      | 6249      | 50.01              |
| 14      | NIGERSEED              | 3912      | 4050      | 3.53               | 3918      | 5877      | 50.01              |

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