Lok Sabha Question No. 2425 (UNSTARRED), answered on 2019-12-03
Subject: Demand for Higher Support Price for Agricultural Products
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: Janardan Singh Sigriwal

## GOVERNMENT OF INDIA MINISTRY OF AGRICULTURE AND FARMER S WELFARE DEPARTMENT OF AGRICULTURE, COOPERATION AND FARMER S WELFARE

## LOK SABHA

UNSTARRED QUESTION NO.2425 TO BE ANSWER ED ON THE 3 RD DEC EMBER, 2019

## DEMAND FOR HIGHER SUPPORT PRICE FOR AGRICULTURAL PRODUCTS

## 2425.  SHRI JANARDAN SINGH SIGRIWAL:

Will the Minister of AG R ICUL TU R E AND FA RM E R S WE L FA R E कृ ष एवं कसान कयाण मंी be pleased to state:

- (a) whether the Government has received requests from various farmers' associations and other stakeholders to announce higher support price for agricultural commodities during the current year for kharif and rabi crops;
- (b) if so, the details thereof and the action taken by the Government on these requests;
- (c) the details of Minimum Support Price (MSP) announced for the above crops by the Government so far;
- (d) whether the Government proposes to procure the agricultural commodities through its agencies directly from the farmers without the involvement of middlemen; and
- (e) if so, the steps taken by the Government to ensure that the farmers get adequate support price for their produce?

## ANSWER

## MINISTE R OF AG RI CULTUR E AND FARMER S WEL FA R E

कृ ष एवं कसान कयाण मंी ( S H RI NA R E N D R A S IN G H  T OMA R)

- (a) to (c): The Minimum Support Price (MSP) is announced on the basis of recommendations of Commission for Agricultural Costs and Prices (CA C P). While recommending MSP, CA C P  seeks views of various Central Ministries, State Governments, Farmers, Farmers Association and Research Institutes, industry and  other  stakeholders.  Besides,  CAC P  also  collects the inputs/information through questionnaires from various stakeholders.

On the basis of recommendation of CAC P, Government has increased the MSP of kharif and rabi crops of 2019-20 season. This increase in MSP is in line with the principle of providing 50 per cent return over all India weighted average cost of production which was announced in the Union Budget 2018-19. The details  of MSP announced for kharif and rabi crops of 2019-20 season is given in Annexure I.

(d) & (e): Under the present procurement mechanism, Government agencies procure the notified agricultural  produce  of  Fair  Average  Quality  (FAQ)  at  MSP  from  farmers  in  consultation  with  the concerned State Government, as per prescribed guidelines.

Government has taken several steps to provide remunerative prices to farmers for their produce which include undertaking procurement  through designated procurement agencies, implementing eNational Agriculture Market (e-NAM), enacting the Model Agricultural Produce and Livestock Marketing (Promotion & Facilitation) Act, 2017 and promoting Farmer Producer Organizations (FPOs).

The  Government  is  working  on  market  architecture  so  as  to  ensure  that  farmers  get remunerative prices on their produce. These include setting up of Gramin Agricultural Markets (GrAMs) with a view to promote 22,000 number of retail markets in close proximity of farm gate; competitive and transparent wholesale trade at APMC through e-NAM.

The recently launched Umbrella Scheme 'Pradhan Mantri Annadata Aay SanraksHan Abhiyan (PM-AASHA)' provides for a holistic arrangement for assurance of a remunerative price for farmers. This Umbrella Scheme comprises Price  Support Scheme (P S S) for pulses & oilseeds, Price Deficiency Payment Scheme (PDP S) and Pilot of Private Procurement &  Stockist  Scheme (PP S S ) for oilseeds to ensure MSP to the farmers.

MSP operations are given wide publicity through pamphlets, banners, sign boards, radio, TV and advertisements through print & electronic media. In addition to that farmers are made aware of the quality specifications and purchase system to facilitate the farmers to bring their produce conforming to the specifications.

Government's price policy is to ensure remunerative prices to farmers by offering to procure their produce at MSP. However, farmers are free to sell their produce to the Government procurement agencies at MSP or in the open market whichever is advantageous to them.

Annexure I Annexure referred to in reply to part (a) to (c) of Lok Sabha Unstarred Question No. 2425 due for reply on 03.12.2019. (Rs. per quintal)

| Sl. No.   | Commodity            | MSP 2019   |
|-----------|----------------------|------------|
|           | KHARIF CROPS         |            |
| 1         | PADDY(Common)        | 1815       |
| 2         | JOWAR(Hybrid)        | 2550       |
| 3         | BAJRA                | 2000       |
| 4         | MAIZE                | 1760       |
| 5         | RAGI                 | 3150       |
| 6         | ARHAR(Tur)           | 5800       |
| 7         | MOONG                | 7050       |
| 8         | URAD                 | 5700       |
| 9         | COTTON(MediumStaple) | 5255       |
| 10        | GROUNDNUT            | 5090       |
| 11        | SUNFLOWERSEED        | 5650       |
| 12        | SOYABEAN(Yellow)     | 3710       |
| 13        | SESAMUM              | 6485       |
| 14        | NIGERSEED            | 5940       |
|           | RABI CROPS#          |            |
| 1         | WHEAT                | 1925       |
| 2         | BARLEY               | 1525       |
| 3         | GRAM                 | 4875       |
| 4         | MASUR(LENTIL)        | 4800       |
| 5         | RAPESEED& MUSTARD    | 4425       |
| 6         | SAFFLOWER            | 5215       |

# MSP for Rabi Crops for 2019-20 is announced for Rabi Marketing Season 2020-21

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