Lok Sabha Question No. 3739 (UNSTARRED), answered on 2020-03-17
Subject: Minimum Support Price for Kharif Crops
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: Meenakashi Lekhi

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

## LOK SABHA UNSTARRED QUESTION NO.3739

TO BE ANSWERED ON THE 17 TH  MARCH, 2020

## MINIMUM SUPPORT PRICE FOR KHARIF CROPS

3739. SHRIMATI MEENAKASHI LEKHI:

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

- (a) the amount which will be given as Minimum Support Price(MSP) to farmers for kharif crops;
- (b) the basis for deciding the MSP for crops;
- (c) whether the Government is planning to increase the MSP and if so, the details thereof and if not, the reasons therefor; and
- (d) whether the Government is planning more interventions with respect to MSP since farmers are still under distress, if so, the details thereof?

## ANSWER

## MINISTER OF AGRICULTURE AND FARMERS WELFARE

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

- (a): The details of increase in Minimum Support Price (MSP) for kharif crops for 2018-19 and 2019-20 are given in Annex .
- (b): Government fixes  MSPs  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  nonagriculture sector, likely effect of price policy on rest of economy and a minimum of 50 percent as the margin over cost of production.

(c) & (d): 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 MSP for all mandated Kharif, Rabi and other commercial crops with a return of atleast 50 per cent of cost of production for the agricultural year 2018-19 and 2019-20.

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

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.

Interim  Union  Budget  2019  had  announced  a  historic  programme  namely  'Pradhan Mantri KIsan SAmman Nidhi (PM-KISAN)'. Under this programme, landholding farmer families will be provided direct income support at the rate of Rs. 6,000 per year. The PM-KISAN scheme aims  to  supplement  the  financial  needs  of  the  farmers  in  procuring  various  inputs  to  ensure proper crop health and appropriate yields, commensurate with the anticipated farm income at the end of the each crop cycle.

## Annex referred to in reply to part (a) of Lok Sabha Unstarred Question No. 3739 due for reply on 17.03.2020

## Cost*, MSP and Return

| Sl. No.   | Commodity              | 2018-19   | 2018-19   | 2018-19            | 2019-20   | 2019-20   | 2019-20            |
|-----------|------------------------|-----------|-----------|--------------------|-----------|-----------|--------------------|
|           | KHARIF CROPS           | Cost*     | MSP       | % Return over Cost | Cost*     | MSP       | % Return over Cost |
| 1         | PADDY(Common)          | 1166      | 1750      | 50.1               | 1208      | 1815      | 50.2               |
|           | (Grade A)^             |           | 1770      |                    |           | 1835      |                    |
| 2         | JOWAR (Hybrid)         | 1619      | 2430      | 50.1               | 1698      | 2550      | 50.2               |
|           | (Maldandi) ^           |           | 2450      |                    |           | 2570      |                    |
| 3         | BAJRA                  | 990       | 1950      | 97.0               | 1083      | 2000      | 84.7               |
| 4         | MAIZE                  | 1131      | 1700      | 50.3               | 1171      | 1760      | 50.3               |
| 5         | RAGI                   | 1931      | 2897      | 50.0               | 2100      | 3150      | 50.0               |
| 6         | ARHAR(Tur)             | 3432      | 5675      | 65.4               | 3636      | 5800      | 59.5               |
| 7         | MOONG                  | 4650      | 6975      | 50.0               | 4699      | 7050      | 50.0               |
| 8         | URAD                   | 3438      | 5600      | 62.9               | 3477      | 5700      | 63.9               |
| 9         | COTTON (Medium Staple) | 3433      | 5150      | 50.0               | 3501      | 5255      | 50.1               |
|           | (Long Staple)^         |           | 5450      |                    |           | 5550      |                    |
| 10        | GROUNDNUT IN SHELL     | 3260      | 4890      | 50.0               | 3394      | 5090      | 50.0               |
| 11        | SUNFLOWER SEED         | 3592      | 5388      | 50.0               | 3767      | 5650      | 50.0               |
| 12        | SOYABEAN (Yellow)      | 2266      | 3399      | 50.0               | 2473      | 3710      | 50.0               |
| 13        | SESAMUM                | 4166      | 6249      | 50.0               | 4322      | 6485      | 50.0               |
| 14        | NIGERSEED              | 3918      | 5877      | 50.0               | 3960      | 5940      | 50.0               |

(Rs per quintal)

*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 & imputed value of family labour.

^ Cost is not separately compiled for Paddy (Grade A), Jowar (Maldandi) and Cotton (long staple),

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