Lok Sabha Question No. 227 (UNSTARRED), answered on 2018-12-11
Subject: Increase in MSP
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: AJAY (TENI) MISRA, BHARAT SINGH

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

## LOK  SABHA UNSTARRED QUESTION NO.227

TO BE ANSWERED ON THE  11 TH  DECEMBER, 2018

## INCREASE IN MSP

227.   SHRI AJAY MISRA TENI: SHRI BHARAT SINGH:

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

- (a) whether  the  Government  has  increased  Minimum  Support  Price  to  ensure  that  the farmers get the fair price for their produce during the last three years;
- (b) if so, whether the increase in MSP is commensurate with the rising cost of agricultural produce; and
- (c) if not, the reasons therefor?

## ANSWER

MINISTER OF  STATE IN THE  MINISTRY OF  AGRICULTURE AND  FARMERS  WELFARE कृ ष एवं कसान कयाण मंालय म राय मंी ( SHRI GAJENDRA SINGH SHEKHAWAT)

- (a): Government fixes Minimum Support Prices (MSPs) of 22 mandated Kharif and Rabi crops and Fair & Remunerative Prices (FRP) for Sugarcane on the basis of recommendations of Commission for Agricultural Costs & Prices (CACP), after considering the  views  of  State  Governments  and  Central  Ministries/Departments  concerned  &  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.

Government  generally  increases  the  MSPs  of  all  notified  crops  which  provide adequate return over cost of production. Government has increased MSPs substantially for all mandated crops for the season 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  cost  of production for the first time for all mandated crops. Details of MSP, cost and percent return over cost for 2016-17, 2017-18 & 2018-19 is given at Annexure.

(b) & (c): While  recommending  MSPs,  CACP  considers  a  host  of  factors  including  all India weighted average cost of production of crops. The costs considered are comprehensive and  include  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 in cash and kind 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. The MSPs fixed by Government for most of the crops provide atleast a return of 50 per cent over cost of production for the year 2018-19.

## Annexure Annexure  referred  to  in  reply  to  part  (a)  of  Lok  Sabha  Unstarred  Question  No.227  due  for  reply  on

## 11.12.2018.

## Cost*, Minimum Support Price (MSP) and percent return over cost                    (Rs/quintal)

|         | Commodity              | 2016-17   | 2016-17   | 2016-17            | 2017-18   | 2017-18   | 2017-18            | 2018-19   | 2018-19   | 2018-19            |
|---------|------------------------|-----------|-----------|--------------------|-----------|-----------|--------------------|-----------|-----------|--------------------|
| Sl. No. | KHARIF CROPS           | Cost      | MSP       | % Return over cost | Cost      | MSP       | % Return over cost | Cost      | MSP       | % Return over cost |
| 1       | PADDY(Common)          | 1045      | 1470      | 40.7               | 1117      | 1550      | 38.8               | 1166      | 1750      | 50.1               |
|         | (Grade A) ^            |           | 1510      |                    |           | 1590      |                    |           | 1770      |                    |
| 2       | JOWAR (Hybrid)         | 1501      | 1625      | 8.3                | 1556      | 1700      | 9.3                | 1619      | 2430      | 50.1               |
|         | (Maldandi) ^           |           | 1650      |                    |           | 1725      |                    |           | 2450      |                    |
| 3       | BAJRA                  | 925       | 1330      | 43.8               | 949       | 1425      | 50.2               | 990       | 1950      | 97.0               |
| 4       | MAIZE                  | 966       | 1365      | 41.3               | 1044      | 1425      | 36.5               | 1131      | 1700      | 50.3               |
| 5       | RAGI                   | 1733      | 1725      | -0.5               | 1861      | 1900      | 2.1                | 1931      | 2897      | 50.0               |
| 6       | ARHAR(Tur)             | 3241      | 5050      | 55.8               | 3318      | 5450      | 64.3               | 3432      | 5675      | 65.4               |
| 7       | MOONG                  | 4065      | 5225      | 28.5               | 4286      | 5575      | 30.1               | 4650      | 6975      | 50.0               |
| 8       | URAD                   | 3584      | 5000      | 39.5               | 3265      | 5400      | 65.4               | 3438      | 5600      | 62.9               |
| 9       | COTTON (Medium Staple) | 2889      | 3860      | 33.6               | 3276      | 4020      | 22.7               | 3433      | 5150      | 50.0               |
|         | (Long Staple) ^        |           | 4160      |                    |           | 4320      |                    |           | 5450      |                    |
| 10      | GROUNDNUT IN SHELL     | 3371      | 4220      | 25.2               | 3159      | 4450      | 40.9               | 3260      | 4890      | 50.0               |
| 11      | SUNFLOWER SEED         | 3479      | 3950      | 13.5               | 3481      | 4100      | 17.8               | 3592      | 5388      | 50.0               |
| 12      | SOYABEEN               | 1852      | 2775      | 49.8               | 2121      | 3050      | 43.8               | 2266      | 3399      | 50.0               |
| 13      | SESAMUM                | 4188      | 5000      | 19.4               | 4067      | 5300      | 30.3               | 4166      | 6249      | 50.0               |
| 14      | NIGERSEED              | 3366      | 3825      | 13.6               | 3912      | 4050      | 3.5                | 3918      | 5877      | 50.0               |
|         | RABI CROPS             |           |           |                    |           |           |                    |           |           |                    |
| 1       | WHEAT                  | 797       | 1625      | 103.9              | 817       | 1735      | 112.4              | 866       | 1840      | 112.5              |
| 2       | BARLEY                 | 816       | 1325      | 62.4               | 845       | 1410      | 66.9               | 860       | 1440      | 67.4               |
| 3       | GRAM                   | 2241      | 4000      | 78.5               | 2461      | 4400      | 78.8               | 2637      | 4620      | 75.2               |
| 4       | MASUR (LENTIL)         | 2174      | 3950      | 81.7               | 2366      | 4250      | 79.6               | 2532      | 4475      | 76.7               |
| 5       | RAPESEED/MUSTARD       | 1871      | 3700      | 97.8               | 2123      | 4000      | 88.4               | 2212      | 4200      | 89.9               |
| 6       | SAFFLOWER              | 3049      | 3700      | 21.4               | 3125      | 4100      | 31.2               | 3294      | 4945      | 50.1               |
| 7       | TORIA ^                |           | 3560      |                    |           | 3900      |                    |           | 4190      |                    |
|         | OTHER CROPS            |           |           |                    |           |           |                    |           |           |                    |
| 1       | COPRA (Milling)        | 4676      | 5950      | 27.2               | 4758      | 6500      | 36.6               | 5007      | 7511      | 50.0               |
|         | (Ball)^                |           | 6240      |                    |           | 6785      | 42.6               |           | 7750      |                    |
| 2       | DE-HUSKED COCONUT ^    |           | 1600      |                    |           | 1760      |                    |           | 2030      |                    |
| 3       | JUTE                   | 2125      | 3200      | 50.6               | 2160      | 3500      | 62.0               | 2267      | 3700      | 63.2               |
| 4       | SUGARCANE              | 140       | 230       | 64.3               | 152       | 255       | 67.8               | 155       | 275       | 77.4               |

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