Lok Sabha Question No. 4934 (UNSTARRED), answered on 2019-07-23
Subject: MSP for Kharif Crops
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: Ramdas Chandrabhanji Tadas

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

## LOK  SABHA

## UNSTARRED QUESTION NO.4934

TO BE ANSWERED ON THE 23 RD  JULY, 2019

## MSP for Kharif Crops

4934.  SHRI RAMDAS C. TADAS:

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

- (a) whether new MSP for kharif crops has been implemented recently so as to double the income of farmers;
- (b) if so, the details thereof;
- (c) whether the Government has set up any agency to calculate the cost of kharif crops;
- (d) if so, the details thereof, State-wise; and
- (e) 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  Union  Budget  for  2018-19  had  announced the pre-determined  principle to keep  minimum  support  prices  (MSP)  at  a  level  of  atleast  one  and  half  times  of  the  cost  of production. Accordingly, Government had increased MSPs for all mandated crops with a return of    atleast 50 percent over all India weighted average cost of production for the season 201819. Government has recently increased the MSPs for all kharif crops for 2019-20 season in line with  the  principle  of  providing  50  percent  return  over  all  India  weighted  average  cost  of production. Higher MSPs will ensure higher income/return to the farmers. Details of MSP, cost and percent return over cost for kharif crops from 2017-18 to 2019-20 is given in Annexure I.

(c) to (e): Commission for Agricultural Costs and Prices  (CACP) is an expert body tasked to  recommend  MSPs  after  a  broad  consultative  process  taking  into  consideration  a  host  of factors like cost of production, overall demand-supply situation of various crops in domestic and world markets, domestic and international prices, inter-crop price parity, terms of trade between agricultural and non-agricultural sector and likely effect of price policy on rest of the economy .

Cost of production is one of the important factors in the determination of MSPs. While recommending   its Price policy, the CACP considers all costs in a comprehensive manner. The Contd..2/-

estimates of cost of cultivation/cost of production are made available to the Commission through the Comprehensive  Scheme  for  Studying  the  Cost  of  Cultivation  of  Principal  Crops(CS Scheme) ,  operated  by  Directorate  of  Economics  and  Statistics,  Department  of  Agriculture, Cooperation and Farmers Welfare, Ministry of Agriculture and Farmers Welfare, Government of India.  Under  the  Scheme,  field  data  is  collected  for  25  mandated  crops  based  on  the  Cost Accounting  Method  through  16  implementing  agencies  (Agricultural  Universities/  General Universities/Colleges)  from  sample  holdings/farmers  spread  over  20  states.  The  sampling design of the scheme is a three stage stratified random sampling design with tehsil as the first stage unit, village/cluster of villages as the second unit and operational holdings as the third and ultimate  stage  unit.  Details  of  agencies  implementing  CS  Scheme  State-wise  is  given  in Annexure II.

Annexure I

## Annexure referred to in reply to part (a) & (b) of Lok Sabha Unstarred Question No. 4934 due for reply on 23.07.2019.

## Cost*, MSP and Return for kharif crops

(Rs/quintal)

|         | 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               |

Annexure II

## Annexure referred to in reply to part (c) to (e) of Lok Sabha Unstarred Question No. 4934 due for reply on 23.07.2019.

## List of Agencies Implementing CS Scheme

|   S.No. | State            | Implementing Agency                                                                             |
|---------|------------------|-------------------------------------------------------------------------------------------------|
|       1 | Andhra Pradesh   | Prof. Jayashankar Telangana State Agricultural University, Hyderabad - 500 030 (Andhra Pradesh) |
|       2 | Assam            | Assam Agricultural University, Jorhat                                                           |
|       3 | Bihar            | Rajendra Agriculture University, Pusa, Samastipur                                               |
|       4 | Gujarat          | Sardar Patel University Vallabh Vidya Nagar                                                     |
|       5 | Haryana          | Haryana Agriculture University, Hissar                                                          |
|       6 | Himachal Pradesh | Himachal Pradesh University, Shimla                                                             |
|       7 | Karnataka        | University of Agricultural Sciences, Hebbal, Bangalore.                                         |
|       8 | Kerala           | University of Kerala, Thiruvanantha-puram.                                                      |
|       9 | Madhya Pradesh   | Jawahar Lal Nehru Krishi Viswavidhyalaya, Jabalpur.                                             |
|      10 | Maharashtra      | Mahatma Phule Agriculture University, Rahuri                                                    |
|      11 | Odisha           | Orissa University of Agriculture & Technology, Bhubaneshwar.                                    |
|      12 | Punjab           | Punjab Agricultural University, Ludhiana.                                                       |
|      13 | Rajasthan        | Maharana Pratap University of Agriculture and Technology, Udaipur                               |
|      14 | Tamil Nadu       | Tamil Nadu Agriculture, University Coimbatore                                                   |
|      15 | Uttar Pradesh    | R. B. S. College. Bichpuri, Agra.                                                               |
|      16 | West Bengal      | Bidhan Chandra Krishi, Viswavidyalaya, Kalyani, Nadia.                                          |
|      17 | Chhattisgarh     | Jawahar Lal Nehru Krishi Viswavidhyalaya, Jabalpur.                                             |
|      18 | Jharkhand        | Rajendra Agriculture University, Pusa, Samastipur                                               |
|      19 | Telangana        | Prof. Jayashankar Telangana State Agricultural University, Hyderabad - 500 030 (Andhra Pradesh) |
|      20 | Uttarakhand      | R. B. S. College. Bichpuri, Agra                                                                |

********