Lok Sabha Question No. 1660 (UNSTARRED), answered on 2019-07-02
Subject: Extension of MSP to all Crops
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: Shrirang Appa Barne, Pritam Gopinath Munde, Shrikant Eknath Shinde, Pushpendra Singh Chandel, Vinayak Bhaurao Raut

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

## LOK  SABHA UNSTARRED QUESTION NO.1660

TO BE ANSWERED ON THE 2 ND   JULY, 2019

## EXTENSION OF MSP TO ALL CROPS

1660.   SHRI SRIRANGA APPA BARNE: DR.  PRITAM GOPINATHRAO MUNDE: DR.  SHRIKANT  EKNATH SHINDE: SHRI  KUNWAR PUSHPENDRA SINGH CHANDEL: SHRI VINAYAK RAUT:

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

- (a) whether  the  Government  has extended the market-distorting Minimum Support  Price (MSP)  programme  to  all crops;
- (b) if so,  whether in the absence of effective  procurement  infrastructure  and market reforms,  it  didn't  make  much  a difference;
- (c) if so, the details thereof;
- (d) whether  it  is  a  fact  that  most agricultural commodities are selling 10 to 30  per  cent below  their  floor  prices  or MSPs, if so, the facts in this regard;
- (e) whether  the  Government  has conducted any study in this regard, if so, the findings thereof; and
- (f) the  action  taken  by  the  Union Government on the findings of the aforesaid study  and whether  there  is  any  special suggestion  for  Bundelkhand,  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) of 22 mandated crops and fair and remunerative prices (FRP) for Sugarcane on the basis of recommendations of Commission for Agricultural  Costs  and  Prices  (CACP),  after  considering  the  views  of  State Governments  and Central Ministries/Departments concerned and other relevant factors. In addition, MSP for Toria and De-Husked coconut is also fixed on the basis of MSPs of Rapeseed/Mustard and Copra respectively. These major agricultural crops account for around 99 per cent of the agricultural output (excluding horticulture).

(b)&(c): As  per  the  existing  arrangements,  procurement  is  made  of  the  crops  for  which MSPs are announced through Central and State agencies. In so far as cereals/nutri cereals are Contd…2/-

concerned,  they  are  procured  through  Food  Corporation  of  India  (FCI)  and  decentralized procurement  system  mainly  for  distribution  under  the  public  distribution  system  (PDS),  for welfare  schemes  and  buffer  stocking  for  food  security.  Government  also  implements  Price Support Scheme  (PSS)  under  the Umbrella Scheme  'Pradhan  Mantri Annadata Aay SanraksHan Abhiyan (PM-AASHA) ' for procurement of oilseeds and pulses. Cotton is procured by Cotton Corporation of India.

To  strengthen  the  market  infrastructure  government  is  implementing  various  programs including e-National 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; and a robust and pro-farmer export policy.

(d): The prices of agricultural produce are determined by supply and demand conditions in the  market  on  a  day-to-day  basis.  The  prices  of  agricultural  produce  tend  to  fall  immediately after harvest due to increase in market arrival of new crops in a lumpy manner. The wholesale prices of major agricultural commodities are given below:

(in Rs.  per quintal)

| Crops/               | MSP       | Wholesale Prices   | Wholesale Prices   |
|----------------------|-----------|--------------------|--------------------|
| Commodity            | (2018-19) | Apr-19             | May-19             |
| Paddy                | 1750      | 1780               | 1793               |
| Bajra                | 1950      | 2171               | 2207               |
| Barley               | 1440      | 1745               | 1795               |
| Gram                 | 4620      | 4679               | 4796               |
| Jowar                | 2430      | 2637               | 2625               |
| Maize                | 1700      | 1943               | 1973               |
| Ragi                 | 2897      | 2715               | 2690               |
| Wheat                | 1840      | 2108               | 2120               |
| Arhar Whole          | 5675      | 5108               | 5557               |
| Masur Whole          | 4475      | 4768               | 4902               |
| Moong Whole          | 6975      | 5952               | 6211               |
| Urad Whole           | 5600      | 5230               | 5441               |
| Groundnut            | 4890      | 5035               | 5132               |
| Copra                | 7511      | 11148              | 10583              |
| Safflower/ Kardiseed | 4945      | 3757               | 4047               |
| Mustard Seed         | 4200      | 3978               | 4073               |
| Nigerseed            | 5877      | 4732               | 4700               |
| Sesamum Seed         | 6249      | 9883               | 9782               |
| Soyabean             | 3399      | 3675               | 3742               |
| Sunflower Seed       | 5388      | 3705               | 3567               |
| Cotton/Kapas         | 5150      | 5785               | 5839               |

Source: Directorate of Economics & Statistics

(e)&(f):

There is no study conducted in this regard by the government. ********