Lok Sabha Question No. 288 (STARRED), answered on 2019-01-01
Subject: Remunerative Prices to Farmers
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: MOHAMMAD SALIM, MD. BADARIDDOZA KHAN

## GOVERNMENT OF INDIA

## MINISTRY OF AGRICULTURE AND FARMERS WELFARE DEPARTMENT OF AGRICULTURE, COOPERATION & FARMERS WELFARE

## LOK  SABHA STARRED QUESTION NO. 288

TO BE ANSWERED ON THE 1 ST  JANUARY, 2019

## REMUNERATIVE PRICES TO FARMERS

*288.     SHRI MOHD. SALIM: SHRI MD. BADARUDDOZA KHAN:

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 Government has failed to provide remunerative prices to farmers of the country while the cost of production has gone up rapidly and prices of crops have gone down drastically since 2015 and if so, the details thereof;
- (b) whether it is also a fact that non-remunerative price of crops to farmers is forcing them to hand over their land to industries for corporate farming; and
- (c) if  so,  the  details  thereof  and  the  reasons  for  providing  non-remunerative  prices  to farmers?

## ANSWER

MINISTER OF AGRICULTURE AND FARMERS WELFARE

कृ ष एवं कसान कयाण मंी

(SHRI RADHA MOHAN SINGH)

- (a) to (c): A statement is laid on the Table of the House.

## STATEMENT  REFERRED  TO  IN  REPLY  TO  PARTS  (a)  TO  (c)  OF  LOK  SABHA STARRED QUESTION NO. 288   DUE FOR REPLY ON 1 ST  JANUARY, 2019.

(a): No,  Madam.  Government  fixes  Minimum  Support  Price  (MSP)  of  22  mandated agricultural  crops  and  fair  and  remunerative  price  (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.  CACP  is  an  expert  body  tasked  to  recommend  MSPs  after  a broad  consultative  process  taking  into  consideration  a  host  of  factors.  These  MSP  crops cover approximately 99 per cent of the total agricultural production in the country.

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 the MSPs for all notified Kharif, Rabi and other commercial crops with a return of atleast 50 per cent of cost of production for the agricultural year 2018-19. This decision of the Government was a historic one as it fulfills the commitment to the farmers to provide 50 per cent return over all-India weighted average cost of production for the first time for all mandated crops.

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 cost of production and wholesale prices of some of the major MSP crops since 2015-16 are given in Annex 1.

(b): There  is  no  evidence  to  suggest  at  all-India  level  that  non-  remunerative  price  of crops to farmers is forcing them to hand over their land to industries for corporate farming.

- (c): Does not arise.

*****

## Annex -1

Annexure referred to in reply to part (a) of Lok Sabha Starred Question No. 288 due for reply on 01.01.2019.

## Cost of production and Wholesale Prices of major MSP crops

(Rs/quintal)

|         |                        | Cost # of production   | Cost # of production   | Cost # of production   | Cost # of production   | Wholesale prices   | Wholesale prices   | Wholesale prices   | Wholesale prices   |
|---------|------------------------|------------------------|------------------------|------------------------|------------------------|--------------------|--------------------|--------------------|--------------------|
| Sl. No. | Commodity              | 2015-16                | 2016-17                | 2017-18                | 2018-19                | 2015-16            | 2016-17            | 2017-18            | 2018-19*           |
|         | Kharif Crops           |                        |                        |                        |                        |                    |                    |                    |                    |
| 1       | Paddy (common)         | 1020                   | 1045                   | 1117                   | 1166                   | 1521               | 1631               | 1694               | 1669               |
| 2       | Jowar (Hybrid)         | 1467                   | 1501                   | 1556                   | 1619                   | 1965               | 2088               | 2147               | 2219               |
| 3       | Bajra                  | 893                    | 925                    | 949                    | 990                    | 1525               | 1749               | 1555               | 1570               |
| 4       | Ragi                   | 1688                   | 1733                   | 1861                   | 1931                   | 1970               | 2505               | 2880               | 2569               |
| 5       | Maize                  | 941                    | 966                    | 1044                   | 1131                   | 1425               | 1589               | 1520               | 1496               |
| 6       | Arhar (Tur)            | 3237                   | 3241                   | 3318                   | 3432                   | 7570               | 6818               | 4371               | 4172               |
| 7       | Moong                  | 3993                   | 4065                   | 4286                   | 4650                   | 7718               | 6295               | 5283               | 5406               |
| 8       | Urad                   | 3455                   | 3584                   | 3265                   | 3438                   | 8764               | 9310               | 5771               | 4863               |
| 9       | Groundnut In Shell     | 3314                   | 3371                   | 3159                   | 3260                   | 4909               | 5243               | 4572               | 4364               |
| 10      | Soyabean (yellow)      | 1770                   | 1852                   | 2121                   | 2266                   | 3418               | 3234               | 3095               | 3461               |
| 11      | Cotton (Medium Staple) | 2753                   | 2889                   | 3276                   | 3433                   | 4204               | 5084               | 4705               | 5189               |
|         | Rabi Crops             |                        |                        |                        |                        |                    |                    |                    |                    |
| 1       | Wheat                  | 785                    | 797                    | 817                    | 866                    | 1793               | 1985               | 1924               | 2038               |
| 2       | Gram                   | 2124                   | 2241                   | 2461                   | 2637                   | 4784               | 7490               | 5579               | 4377               |
| 3       | Rapeseed & Mustard     | 1702                   | 1871                   | 2123                   | 2212                   | 4202               | 4306               | 3990               | 4074               |
|         | Other Crops            |                        |                        |                        |                        |                    |                    |                    |                    |
| 1       | Sugarcane              | 132                    | 140                    | 152                    | 155                    | NR                 | 279                | 271                | 270                |
| 2       | Jute                   | 2042                   | 2125                   | 2160                   | 2267                   | 4067               | 4445               | 3450               | 3801               |
| 3       | Copra (milling) $      | 4138                   | 4676                   | 4758                   | 5007                   | 8470               | 6681               | 10947              | 12264              |

# 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.

*Apr-Nov;   $ Calender Year; NR-Not Reported