Lok Sabha Question No. 5009 (UNSTARRED), answered on 2019-07-23
Subject: Support Price for Agricultural Produce
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: D.K. Suresh

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

## LOK  SABHA UNSTARRED QUESTION NO.5009

TO BE ANSWERED ON 23 RD  JULY, 2019

## SUPPORT PRICE FOR AGRICULTURAL PRODUCE

5009.  SHRI D.K. SURESH:

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

- (a) whether the Government is aware that the Support Price fixed by the Government is lower than the open market sales price, if so, the details thereof;
- (b) whether it is also true that farmers are getting higher price than the support price fixed by the Government; and
- (c) if  so,  whether  the  Government  is  taking  any  corrective  measures  to  increase  the support price for various crops, if so, the details thereof and if not, the reasons therefor?

## ANSWER

## MINISTER OF AGRICULTURE AND FARMERS WELFARE

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

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

(Rs per quintal)

|        |               | Wholesale Prices   | Wholesale Prices   |
|--------|---------------|--------------------|--------------------|
| Crops/ | MSP (2018-19) | May-19             | June-19            |
| Paddy  | 1750          | 1793               | 1787               |
| Bajra  | 1950          | 2207               | 2149               |
| Barley | 1440          | 1795               | 1816               |
| Gram   | 4620          | 4796               | 4676               |
| Jowar  | 2430          | 2625               | 2678               |
| Maize  | 1700          | 1973               | 1977               |
| Ragi   | 2897          | 2690               | 2731               |

| Wheat                |   1840 |   2120 |   2116 |
|----------------------|--------|--------|--------|
| Arhar Whole          |   5675 |   5557 |   5521 |
| Masur Whole          |   4475 |   4902 |   4932 |
| Moong Whole          |   6975 |   6211 |   6353 |
| Urad Whole           |   5600 |   5441 |   5397 |
| Groundnut            |   4890 |   5132 |   5386 |
| Copra                |   7511 |  10583 |  10258 |
| Safflower/ Kardiseed |   4945 |   4047 |   4332 |
| Mustard Seed         |   4200 |   4073 |   4071 |
| Nigerseed            |   5877 |   4700 |   4648 |
| Sesamum Seed         |   6249 |   9782 |   9922 |
| Soyabean             |   3399 |   3742 |   3701 |
| Sunflower Seed       |   5388 |   3567 |   3508 |
| Cotton/Kapas         |   5150 |   5839 |   5836 |
| Jute                 |   2030 |   4336 |   4289 |

Source: Directorate of Economics & Statistics

(c): The Union Budget for 2018-19 had announced the pre-determined principle to keep MSPs  at  a  level  of  at  least  one  and  half  times  of  the  cost  of  production.  Accordingly, Government had increased MSPs for all mandated crops with a return of at least 50 percent over all India weighted average cost of production for the season 2018-19. Government has recently increased the MSPs for all kharif crops for 2019-20 season in line with the principle of  providing  at  least  50  percent  return  over  all  India  weighted  average  cost  of  production. Details  of  MSP,  cost  and  percent  return  over  cost  since  2017-18  to  2019-20  is  given  in Annexure.

As and when wholesale prices of MSP crops fall below the MSP, State Governments can put in place procurement operations or Price Deficiency Payment Scheme (PDPS) for pulses, oilseeds and cotton which are not covered under Public Distribution System/welfare schemes.

## Annexure

## Annexure referred to in reply to part (c) of Lok Sabha Unstarred Question No. 5009 due for reply on 23.07.2019.

## Cost*, MSP and Return

| Sl. No.   | Commodity              | 2017-18   | 2017-18   | 2017-18            | 2018-19   | 2018-19   | 2018-19            | 2019-20   | 2019-20   | 2019-20            |
|-----------|------------------------|-----------|-----------|--------------------|-----------|-----------|--------------------|-----------|-----------|--------------------|
| Sl. No.   | KHARIF CROPS           | Cost*     | MSP       | % Return over Cost | Cost*     | MSP       | % Return over Cost | Cost*     | MSP       | % Return over Cost |
| 1         | PADDY(Common)          | 1117      | 1550      | 38.8               | 1166      | 1750      | 50.1               | 1208      | 1815      | 50.2               |
|           | (Grade A)^             |           | 1590      |                    |           | 1770      |                    |           | 1835      |                    |
| 2         | JOWAR (Hybrid)         | 1556      | 1700      | 9.3                | 1619      | 2430      | 50.1               | 1698      | 2550      | 50.2               |
|           | (Maldandi) ^           |           | 1725      |                    |           | 2450      |                    |           | 2570      |                    |
| 3         | BAJRA                  | 949       | 1425      | 50.2               | 990       | 1950      | 97.0               | 1083      | 2000      | 84.7               |
| 4         | MAIZE                  | 1044      | 1425      | 36.5               | 1131      | 1700      | 50.3               | 1171      | 1760      | 50.3               |
| 5         | RAGI                   | 1861      | 1900      | 2.1                | 1931      | 2897      | 50.0               | 2100      | 3150      | 50.0               |
| 6         | ARHAR(Tur)             | 3318      | 5450      | 64.3               | 3432      | 5675      | 65.4               | 3636      | 5800      | 59.5               |
| 7         | MOONG                  | 4286      | 5575      | 30.1               | 4650      | 6975      | 50.0               | 4699      | 7050      | 50.0               |
| 8         | URAD                   | 3265      | 5400      | 65.4               | 3438      | 5600      | 62.9               | 3477      | 5700      | 63.9               |
| 9         | COTTON (Medium Staple) | 3276      | 4020      | 22.7               | 3433      | 5150      | 50.0               | 3501      | 5255      | 50.1               |
|           | (Long Staple) ^        |           | 4320      |                    |           | 5450      |                    |           | 5550      |                    |
| 10        | GROUNDNUT IN SHELL     | 3159      | 4450      | 40.9               | 3260      | 4890      | 50.0               | 3394      | 5090      | 50.0               |
| 11        | SUNFLOWER SEED         | 3481      | 4100      | 17.8               | 3592      | 5388      | 50.0               | 3767      | 5650      | 50.0               |
| 12        | SOYABEAN (Yellow)      | 2121      | 3050      | 43.8               | 2266      | 3399      | 50.0               | 2473      | 3710      | 50.0               |
| 13        | SESAMUM                | 4067      | 5300      | 30.3               | 4166      | 6249      | 50.0               | 4322      | 6485      | 50.0               |
| 14        | NIGERSEED              | 3912      | 4050      | 3.5                | 3918      | 5877      | 50.0               | 3960      | 5940      | 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               |           |           |                    |
|           | OTHER CROPS            |           |           |                    |           |           |                    |           |           |                    |
| 1         | COPRA (Milling)        | 4758      | 6500      | 36.6               | 5007      | 7511      | 50.0               | 6347      | 9521      | 50.0               |
|           | (Ball)^                |           | 6785      | 42.6               |           | 7750      |                    |           | 9920      |                    |
| 2         | JUTE                   | 2160      | 3500      | 62.0               | 2267      | 3700      | 63.2               | 2535      | 3950      | 55.8               |

*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),  Cotton  (long  staple)  and Copra(ball).

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