Lok Sabha Question No. 1409 (UNSTARRED), answered on 2020-09-20
Subject: Minimum Support Price Policy
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: Prataprao Govindrao  Patil Chikhalikar, Mala Rajya Laxmi Shah, Pushpendra Singh Chandel

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

## LOK  SABHA UNSTARRED QUESTION NO. 1409

TO BE ANSWERED ON THE 20 TH  SEPTEMBER, 2020

## MINIMUM SUPPORT PRICE POLICY

1409.    SHRI PRATAPRAO PATIL CHIKHLIKAR: SHRIMATI MALA RAJYA LAXMI SHAH: SHRI KUNWAR PUSHPENDRA SINGH CHANDEL:

Will the Minister of AGRICULTURE AND FARMERS WELFARE कृ ष एवं कसान कयाण मंी be pleased to state:

- (a) the details of the policy and norms for fixing Minimum Support Price;
- (b) the details of the crops included under Minimum Support Price by the Government in the country including Uttarakhand during the last three years;
- (c) whether the Government has decided to constitute a special Committee in order to deliberate on better and effective assessment of Minimum Support Price; and
- (d) if so, the details thereof?

## ANSWER

MINISTER OF AGRICULTURE AND FARMERS WELFARE

कृ ष एवं कसान कयाण मंी (SHRI NARENDRA SINGH TOMAR)

- (a): Government fixes Minimum Support Prices (MSPs) for 22 mandated agricultural crops on the basis of the recommendations of the Commission for Agricultural Costs & Prices (CACP),  after considering the views  of  State  Governments  and  Central Ministries/Departments  concerned  and  other  relevant  factors.  While  recommending MSP,  CACP considers  various  factors  viz. cost  of  production,  overall  demand-supply situations  of  various  crops  in  domestic and world markets, domestic and international prices,  inter-crop  price  parity,  terms  of  trade  between  agriculture  and  non-agriculture sector, likely effect of price policy on rest of economy and a minimum of 50 percent as the margin over cost of production.

The Union Budget for 2018-19 had announced the pre-determined principle to keep  MSP  at  levels  of  one  and  half  times  of  the  cost  of  production.  Accordingly, Government  has  increased  the  MSPs  for  all  mandated  Kharif,  Rabi  and  other commercial crops with a return of atleast 50 per  cent overall India weighted  average cost of production for the agricultural year 2018-19 and 2019-20. In line with the same principle, Government has recently (1st June 2020) announced the increase in MSP for all mandated kharif crops for marketing season 2020-21.

(b): MSP is determined for the country as a whole and not region or state-specific. The 22 mandated  crops, for which MSP is being announced by the government for the last  three  years,  include  14  Kharif  crops  viz.  paddy  (Common  and  Grade  'A'),  jowar (Hybrid  and  Maldandi  varieties),  bajra,  maize,  ragi,  arhar,  moong,  urad,  groundnut, soyabean,  sunflower,  sesamum,  nigerseed,  cotton  (medium  staple  and  long  staple variety) and 6 Rabi crops viz. wheat, barley, gram, masur (lentil), rapeseed & mustard, safflower  and  two  commercial  crops  viz.  jute  and  copra  (milling  and  ball  copra).  In addition, MSP for toria and de-husked coconut are also fixed on the basis of MSPs of rapeseed & mustard and copra respectively.

(c) & (d): At present, there is no proposal.

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