Lok Sabha Question No. 1434 (UNSTARRED), answered on 2019-02-12
Subject: CACP
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: VASANTHI M.

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

## LOK  SABHA UNSTARRED QUESTION NO. 1434

TO BE ANSWERED ON THE 12 TH  FEBRUARY, 2019

## CACP

## 1434.   SHRIMATI VASANTHI M.:

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

- (a) whether  it  is  a  fact  that  the  Commission  for  Agricultural  Costs  and  Prices  has recommended that the Government should bring out a legislation which would give farmers the right to sell their produce at MSP;
- (b) if so, the details thereof;
- (c) whether it is also true that the hike in the minimum support price for paddy and other crops  announced  by  the  Government  does  not  meet  the  criteria  recommended  by  the Swaminathan Commission; and
- (d) if so, the details thereof?

## ANSWER

## MINISTER OF STATE IN THE MINISTRY OF AGRICULTURE AND FARMERS WELFARE

कृ ष एवं कसान कयाण मंालय म राय मंी (SHRI GAJENDRA SINGH SHEKHAWAT)

- (a) & (b): Commission for Agricultural Costs and Prices (CACP) in its Price Policy report for Kharif Crops for 2018-19 season has suggested bringing a legislation conferring on farmers the 'Right  to  Sell  at  MSP'  to  instill  confidence  among  framers  so  that  their  produce  is  not  sold/ procured below Minimum Support Price (MSP) and farmers are not exploited by traders.
- (c) & (d): Government has increased MSPs substantially for all mandated crops including paddy for the season 2018-19 . MSP of paddy (common) has been increased by Rs. 200 and fixed at Rs 1750 per quintal and paddy (grade A) has been increased by Rs 180 and fixed at Rs 1770 per quintal for 2018-19 season which provide adequate return over cost of production.The National Commission on Farmers (NCF) headed by Dr. M. S. Swaminathan has recommended that the MSP should be at least 50 percent more than the weighted average cost of production. However, when the National Policy for Farmers, 2007 was finalized,  this  recommendation of providing 50 per cent returns over cost of production was not included. Dr.  M. S. Swaminathan in  his  Report on NCF had discussed different dimensions of fixing MSPs, but while finalizing National  Policy  on  Farmers,  the  then  Government  had  accepted  the  current  established methods.

The Union Budget for 2018-19 had announced the pre-determined principle to keep MSP at levels of one and half times the cost of production. Accordingly, Government has increased MSPs for all mandated crops with a return of at least 50 percent over cost of production for the season 2018-19. This decision of the Government was also a historic one as it redeemed the promise of fixing  the  MSPs  at  least  at  a  level  of  50  per  cent  return  over  cost  of  production. Details of cost, MSP and percent return over cost for the year 2017-18 and 2018-19 is given at Annexure.

## Annexure referred  to  in  reply  to  part  (c)  &  (d)  of  Lok  Sabha  Unstarred  Question No.1434 due for reply on 12.02.2019.

Cost*, Minimum Support Price (MSP) and percent return over cost

(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      | 38.8               | 1166      | 1750      | 50.1               |
|         | (Grade A) ^            |           | 1590      |                    |           | 1770      |                    |
| 2       | JOWAR (Hybrid)         | 1556      | 1700      | 9.3                | 1619      | 2430      | 50.1               |
|         | (Maldandi) ^           |           | 1725      |                    |           | 2450      |                    |
| 3       | BAJRA                  | 949       | 1425      | 50.2               | 990       | 1950      | 97.0               |
| 4       | MAIZE                  | 1044      | 1425      | 36.5               | 1131      | 1700      | 50.3               |
| 5       | RAGI                   | 1861      | 1900      | 2.1                | 1931      | 2897      | 50.0               |
| 6       | ARHAR(Tur)             | 3318      | 5450      | 64.3               | 3432      | 5675      | 65.4               |
| 7       | MOONG                  | 4286      | 5575      | 30.1               | 4650      | 6975      | 50.0               |
| 8       | URAD                   | 3265      | 5400      | 65.4               | 3438      | 5600      | 62.9               |
| 9       | COTTON (Medium Staple) | 3276      | 4020      | 22.7               | 3433      | 5150      | 50.0               |
|         | (Long Staple) ^        |           | 4320      |                    |           | 5450      |                    |
| 10      | GROUNDNUT IN SHELL     | 3159      | 4450      | 40.9               | 3260      | 4890      | 50.0               |
| 11      | SUNFLOWER SEED         | 3481      | 4100      | 17.8               | 3592      | 5388      | 50.0               |
| 12      | SOYABEEN               | 2121      | 3050      | 43.8               | 2266      | 3399      | 50.0               |
| 13      | SESAMUM                | 4067      | 5300      | 30.3               | 4166      | 6249      | 50.0               |
| 14      | NIGERSEED              | 3912      | 4050      | 3.5                | 3918      | 5877      | 50.0               |
|         | RABI CROPS             |           |           |                    |           |           |                    |
| 1       | WHEAT                  | 817       | 1735      | 112.4              | 866       | 1840      | 112.5              |
| 2       | BARLEY                 | 845       | 1410      | 66.9               | 860       | 1440      | 67.4               |
| 3       | GRAM                   | 2461      | 4400      | 78.8               | 2637      | 4620      | 75.2               |
| 4       | MASUR (LENTIL)         | 2366      | 4250      | 79.6               | 2532      | 4475      | 76.7               |
| 5       | RAPESEED/MUSTARD       | 2123      | 4000      | 88.4               | 2212      | 4200      | 89.9               |
| 6       | SAFFLOWER              | 3125      | 4100      | 31.2               | 3294      | 4945      | 50.1               |
| 7       | TORIA ^                |           | 3900      |                    |           | 4190      |                    |
|         | OTHER CROPS            |           |           |                    |           |           |                    |
| 1       | COPRA (Milling)        | 4758      | 6500      | 36.6               | 5007      | 7511      | 50.0               |
|         | (Ball)^                |           | 6785      | 42.6               |           | 7750      |                    |
| 2       | DE-HUSKED ^            |           | 1760      |                    |           | 2030      |                    |
| 3       | COCONUT JUTE           | 2160      | 3500      | 62.0               | 2267      | 3700      | 63.2               |
| 4       | SUGARCANE              | 152       | 255       | 67.8               | 155       | 275       | 77.4               |

* 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, depreciation on implements and farm buildings, interest on working capital, diesel/electricity for operation of pump sets etc, miscellaneous expenses and imputed value of family labour.

^  Cost  data  are  not  separately  compiled  for  Paddy(Grade  A),  Jowar  (Maldandi),  Cotton  (Long  staple),  Toria, Copra(ball) and De-husked coconut.

*****