Lok Sabha Question No. 2749 (UNSTARRED), answered on 2017-08-01
Subject: MSP for Agricultural Produce
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: NAGENDRA KUMAR PRADHAN, ELUMALAI VELLAIGOUNDER, JANARDAN SINGH SIGRIWAL, KUNWAR PUSHPENDRA SINGH CHANDEL, YERRAM VENKATA SUBBAREDDY

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

## LOK  SABHA UNSTARRED QUESTION NO.2749

TO BE ANSWERED ON THE  1 ST  AUGUST, 2017

## MSP FOR AGRICULTURAL PRODUCE

2749.  SHRI NAGENDRA KUMAR PRADHAN:

SHRI V. ELUMALAI:

SHRI JANARDAN SINGH SIGRIWAL:

SHRI KUNWAR PUSHPENDRA SINGH CHANDEL:

SHRI Y.V. SUBBA REDDY:

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

- (a) whether it is true that the various farmers organizations across the country have been  protesting  for  the  last  couple  of  months  in  various  States  including  Madhya Pradesh  and  Maharashtra  demanding  higher  remunerative  prices  for  their  produce including agricultural  and  horticultural  produce as well as complete loan waiver, if so, the details thereof along with the response of the Government thereto;
- (b) whether the Government has fixed any action plan to redress the grievances of the farmers in the country and if so, the details thereof;
- (c) the  details  of  the  MSP  announced  by  the  Government  for  various  agricultural produce so far, commodity-wise;
- (d) whether  the  Government  has  received  requests  from  various  States,  farmer's associations  and  other  stakeholders  to  announce  higher  support  price  for  agricultural commodities during the current year for kharif and rabi crops, if so, the details thereof and the action taken by the Government on these requests; and
- (e) whether  the  Government  proposes  to  procure  the  agricultural  commodities through its agencies directly from the farmers without the involvement of middlemen and if  so,  the  steps  taken  by  the  Government  to  ensure  that  the  farmers  get  adequate remunerative/support price 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) & (b): There  are  various  reasons  for  farmers'  protests  in  the  country  including Madhya  Pradesh  and  Maharashtra,  inter  alia,  include  higher  Minimum  Support  Price (MSP) for agricultural produce, waiver of farm loans etc.

Agriculture  being  a  State  subject,  the  State  Governments  take  appropriate measures for development of  agriculture in  the State.  However,  Government  of  India supplements the efforts of States through appropriate policy measures and budgetary support.

Government has taken several initiatives to increase agricultural production and productivity and to enhance income of farmers which, inter alia, include National Food Security  Mission  (NFSM),  Rashtriya  Krishi  Vikas  Yojana  (RKVY),  Bringing  Green Revolution  to  Eastern  India  (BGREI),  National  Mission  on  Oilseeds  and  Oil  Palm (NMOOP), National Mission for Sustainable Agriculture (NMSA), Pradhan Mantri Krishi Sinchai  Yojana  (PMKSY),  Soil  Health  Card,  initiatives  of  Government  of  doubling  the farmers' income etc.

## (c) to (e): The MSPs fixed by Government from 2015-16 to 2017-18 are at Annexure.

Suggestions  from  State  Governments  and  various  farmer  organizations  are received from time to time for increasing the MSP of crops. Government fixes Minimum Support Price (MSP) for twenty two (22) major crops and Fair and Remunerative Price (FRP) for Sugarcane 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, CACP considers  various  important  factors  that  include  cost  of  cultivation,  trends  in  market prices, demand and supply situation, effect on general price level, effect on cost of living etc.

The Government offers to procure the agricultural produce through procurement agencies  at  MSP.    Food  Corporation  of  India  (FCI)  is  central  nodal  agencies  for undertaking price support operations for foodgrains. The National Agricultural Cooperative Marketing Federation of India Limited (NAFED), FCI, National Cooperative Consumers'  Federation  (NCCF),  Central  Warehousing  Corporation  (CWC)  and  Small Farmers  Agri  -  Business  Consortium  (SFAC)  undertake  price  support  operations  for pulses  and  oilseeds.  However,  farmers  are  free  to  sell  their  produce  to  Government procurement agencies at MSP or in the open market as is advantageous to them.

Government also implements Price Stabilization Fund (PSF) for market intervention through the Ministry of Consumer Affairs, Food and Public Distribution. The PSF  scheme  promotes  direct  purchase  from  farmers/farmers'  association  at  farm gate/Mandi  of  agri-horticultural  commodities  like  onion,  potato  and  pulses  to  ensure remunerative prices to farmers.

Government also implements Market Intervention Scheme (MIS) for procurement of  agricultural  and  horticultural  commodities  not  covered  under  the  Minimum  Support Price  on  the  request  of  State/UT  Government.  The  MIS  is  implemented  in  order  to protect  the  growers  of  these  commodities  from  making  distress  sale  in  the  event  of bumper crop when the prices tend to fall below the economic level/cost of production. Losses,  if any, incurred by  the procuring  agencies  are  shared  by  the Central Government  and  the  concerned  State  Government  on  50:50  basis  (75:25  in  case  of North-Eastern States).

In addition, Government is also implementing e-National Agriculture Market and promoting  Farmer  Producer  Organizations  (FPOs)  to  ensure  remunerative  prices  to farmers.

Annexure

Annexure referred to  in reply  to  parts  (c)  to  (e)  of  Lok  Sabha  Unstarred  Question  No.  2749  for answer on 01.08.2017

## MSP including Bonus

According to crop year

(Rs. per  quintal)

| Sl. No.   | Commodity                         | Variety       | 2015-16   | 2016-17   | 2017-18   |
|-----------|-----------------------------------|---------------|-----------|-----------|-----------|
|           | KHARIF CROPS                      |               |           |           |           |
| 1         | PADDY                             | Common        | 1410      | 1470      | 1550      |
|           |                                   | Grade 'A'     | 1450      | 1510      | 1590      |
| 2         | JOWAR                             | Hybrid        | 1570      | 1625      | 1700      |
|           |                                   | Maldandi      | 1590      | 1650      | 1725      |
| 3         | BAJRA                             |               | 1275      | 1330      | 1425      |
| 4         | MAIZE                             |               | 1325      | 1365      | 1425      |
| 5         | RAGI                              |               | 1650      | 1725      | 1900      |
| 6         | ARHAR(Tur)                        |               | 4625^     | 5050^^    | 5450^     |
| 7         | MOONG                             |               | 4850^     | 5225^^    | 5575^     |
| 8         | URAD                              |               | 4625^     | 5000^^    | 5400^     |
| 9         | COTTON                            | Medium Staple | 3800      | 3860      | 4020      |
|           |                                   | Long Staple   | 4100      | 4160      | 4320      |
| 10        | GROUNDNUT IN SHELL                |               | 4030      | 4220*     | 4450^     |
| 11        | SUNFLOWER SEED                    |               | 3800      | 3950*     | 4100*     |
| 12        | SOYABEAN                          |               | 2600      | 2775*     | 3050^     |
| 13        | SESAMUM                           |               | 4700      | 5000^     | 5300*     |
| 14        | NIGERSEED                         |               | 3650      | 3825*     | 4050*     |
|           | RABI CROPS                        |               |           |           |           |
| 15        | WHEAT                             |               | 1525      | 1625      | -         |
| 16        | BARLEY                            |               | 1225      | 1325      | -         |
| 17        | GRAM                              |               | 3500**    | 4000^     | -         |
| 18        | MASUR (LENTIL)                    |               | 3400**    | 3950@     | -         |
| 19        | RAPESEED/MUSTARD                  |               | 3350      | 3700*     | -         |
| 20        | SAFFLOWER                         |               | 3300      | 3700*     | -         |
| 21        | TORIA                             |               | 3290      | 3560      | -         |
|           | OTHER CROPS                       |               |           |           |           |
| 22        | COPRA                             | Milling       | 5550      | 5950      | 6500      |
|           | (Calender Year)                   | Ball          | 5830      | 6240      | 6785      |
| 23        | DE-HUSKED COCONUT (Calender Year) |               | 1500      | 1600      | 1760      |
| 24        | JUTE                              |               | 2700      | 3200      | 3500      |
| 25        | SUGARCANE$                        |               | 230.00    | 230.00    | 255       |

^Including Bonus of Rs. 200 per quintal. ^^Including Bonus of Rs. 425 per quintal. @Including Bonus of Rs. 150 per quintal.

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