Lok Sabha Question No. 1071 (UNSTARRED), answered on 2018-07-24
Subject: MSP for Agricultural Produce
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: A.T. (NANA) PATIL

O.I.H.

## GOVERNMENT OF INDIA MINISTRY OF AGRICULTURE AND FARMERS WELFARE

## DEPARTMENT OF AGRICULTURE, COOPERATION AND FARMERS WELFARE

## LOK  SABHA UNSTARRED QUESTION NO.1071

TO BE ANSWERED ON THE  24 TH  JULY, 2018

## MSP FOR AGRICULTURAL PRODUCE

1071.  SHRI A.T. NANA PATIL:

Will  the  Minister  of  AGRICULTURE  AND  FARMERS  WELFARE      ‡ãðŠãäÓã एवं  कसान कयाण ½ãâ¨ããè be pleased to state:

- (a) the Minimum  Support  Price  (MSP)  for  kharif  and  rabi  crops  set  by the Government during the last four years;
- (b) the  details  of  the  commodity-wise  MSP  and  the  increase  made  therein  for  the year 2018-19;
- (c) the  scheme  formulated  by  the  Government  to  ensure  procurement  of  all  the agricultural produce of the farmers after deciding the MSP; and
- (d) the  details  of  the  action  plan  formulated  by  the  Government  to  purchase  the maximum  produce  of  the  farmers  so  that  the  farmers  of  the  country  get  maximum benefit?

## ANSWER

MINISTER OF  STATE IN THE  MINISTRY OF  AGRICULTURE AND  FARMERS  WELFARE

‡ãðŠãäÓã एवं कसान कयाण ½ãâ¨ããÊã¾ã ½ãñâ Àã·¾ã ½ãâ¨ããè ( SHRI GAJENDRA SINGH SHEKHAWAT)

- (a) & (b): The statement showing details of commodity-wise Minimum Support Price (MSP) are given in the Annexure.
- (c) & (d): Procurement of cereals, pulses and oilseeds are undertaken at MSP by the designated Central, State and cooperative agencies in the states with the objective to  ensure  remunerative  prices  to  the  farmers  for  their  produce.  Producers  have  the option to sell their produce to Government agencies at MSP or in the open market as is advantageous  to  them. The  Budget  for  2018-19  has  indicated  that  NITI  Aayog  in consultation with central and  state Governments  will  put  in  place a fool proof mechanism so that farmers will get adequate price for their produce. NITI Aayog had held consultations on 9 th March, 2018 with State Governments and Central Government Departments  concerned  to  ensure  farmers  will  get  a  price  at  least  equivalent  to  the announced  MSP.  Three  options  were  discussed:  Market  Assurance  Scheme,  which entails procurement by States and compensation of losses; Price Deficiency Payment

Scheme,  whereby,  if  the  sale  price  is  below  the  modal  price  farmers  may  be compensated  the difference between  MSP and actual/modal price subject to  certain conditions and ceiling; Private Procurement and Stockist Scheme, whereby, procurement is made by private entrepreneurs at MSP and Government providing some policy and tax incentives and a commission to such private entities. The procurement operations  may  be  decided  on  the  basis  of  transparent  criteria  and  bidding  for  the empanelment of private players by the State Government.  It was also emphasized that all States should undertake market reform by modifying their APMC Acts in the line of the  Model  Agricultural  Produce  and  Livestock  Marketing  (Promotion  and  Facilitation) Act, 2017.

## Annexure

Annexure referred to in reply to parts (a) & (b) of the Lok Sabha Unstarred Question No. 1071 due for answer on 24.7.2018.

Statement showing details of Commodity- wise MSP for last four years and increase made for the year

| Sl. No.   | Commodity    | Variety   | 2014- 15   | 2015- 16   | 2016- 17   | 2017- 18   | (#) increase in MSP 2017-18 over 2016-17   | 2018-19   | (#) increase in MSP 2018-19 over 2017-18   |
|-----------|--------------|-----------|------------|------------|------------|------------|--------------------------------------------|-----------|--------------------------------------------|
|           | KHARIF CROPS |           |            |            |            |            |                                            |           |                                            |
| 1         | PADDY        | Common    | 1360       | 1410       | 1470       | 1550       | 80(5.4)                                    | 1750      | 200(12.9)                                  |
|           |              | Grade 'A' | 1400       | 1450       | 1510       | 1590       | 80(5.3)                                    | 1770      | 180(11.3)                                  |
| 2         | JOWAR        | Hybrid    | 1530       | 1570       | 1625       | 1700       | 75(4.6)                                    | 2430      | 730(42.9)                                  |
|           |              | Maldandi  | 1550       | 1590       | 1650       | 1725       | 75(4.5)                                    | 2450      | 725(42.3)                                  |
| 3         | BAJRA        |           | 1250       | 1275       | 1330       | 1425       | 95(7.1)                                    | 1950      | 525(36.9)                                  |
| 4         | MAIZE        |           | 1310       | 1325       | 1365       | 1425       | 60(4.3)                                    | 1700      | 275(19.3)                                  |
| 5         | RAGI         |           | 1550       | 1650       | 1725       | 1900       | 175(10.1)                                  | 2897      | 997(52.5)                                  |

## 2018-19

| 6   | ARHAR(Tur)                        |               | 4350   | 4625^   | 5050^^   | 5450^   | 400(7.9)   | 5675   | 225(4.1)   |
|-----|-----------------------------------|---------------|--------|---------|----------|---------|------------|--------|------------|
| 7   | MOONG                             |               | 4600   | 4850^   | 5225^^   | 5575^   | 350(6.7)   | 6975   | 1400(25.1) |
| 8   | URAD                              |               | 4350   | 4625^   | 5000^^   | 5400^   | 400(8)     | 5600   | 200(3.7)   |
| 9   | COTTON                            | Medium Staple | 3750   | 3800    | 3860     | 4020    | 160(4.1)   | 5150   | 1130(28.1) |
|     |                                   | Long Staple   | 4050   | 4100    | 4160     | 4320    | 160(3.8)   | 5450   | 1130(26.2) |
| 10  | GROUNDNUT IN SHELL                |               | 4000   | 4030    | 4220*    | 4450^   | 230(5.5)   | 4890   | 440(9.9)   |
| 11  | SUNFLOWER SEED                    |               | 3750   | 3800    | 3950*    | 4100*   | 150(3.8)   | 5388   | 1288(31.4) |
| 12  | SOYABEEN                          |               | 2560   | 2600    | 2775*    | 3050^   | 275(9.9)   | 3399   | 349(11.5)  |
| 13  | SESAMUM                           |               | 4600   | 4700    | 5000^    | 5300*   | 300(6)     | 6249   | 949(17.9)  |
| 14  | NIGERSEED                         |               | 3600   | 3650    | 3825*    | 4050*   | 225(5.9)   | 5877   | 1827(45.1) |
|     | RABI CROPS                        |               |        |         |          |         |            |        |            |
| 15  | WHEAT                             |               | 1450   | 1525    | 1625     | 1735    | 110(6.8)   |        |            |
| 16  | BARLEY                            |               | 1150   | 1225    | 1325     | 1410    | 85(6.4)    |        |            |
| 17  | GRAM                              |               | 3175   | 3500**  | 4000^    | 4400@   | 400(10)    |        |            |
| 18  | MASUR (LENTIL)                    |               | 3075   | 3400**  | 3950@    | 4250*   | 300(7.6)   |        |            |
| 19  | RAPESEED/MUSTARD                  |               | 3100   | 3350    | 3700*    | 4000*   | 300(8.1)   |        |            |
| 20  | SAFFLOWER                         |               | 3050   | 3300    | 3700*    | 4100*   | 400(10.8)  |        |            |
| 21  | TORIA                             |               | 3020   | 3290    | 3560     | 3900*   | 340(9.6)   |        |            |
|     | OTHER CROPS                       |               |        |         |          |         |            |        |            |
| 22  | COPRA                             | Milling       | 5250   | 5550    | 5950     | 6500    | 550(9.2)   | 7511   | 1011(15.6) |
|     | (Calender Year)                   | Ball          | 5500   | 5830    | 6240     | 6785    | 545(8.7)   | 7750   | 965(14.2)  |
| 23  | DE-HUSKED COCONUT (Calender Year) |               | 1425   | 1500    | 1600     | 1760    | 160(10)    | 2030   | 270(15.3)  |
| 24  | JUTE                              |               | 2400   | 2700    | 3200     | 3500    | 300(9.3)   | 3700   | 200(5.7)   |
| 25  | SUGARCANE$                        |               | 220.00 | 230.00  | 230.00   | 255     | 25(10.9)   | 275    | 20(7.8)    |

- # Figures in brackets indicate percentage increase.
- $ Fair and remunerative price.
* Including Bonus of Rs. 100 per quintal.
- ** Including Bonus of Rs. 75 per quintal .
- ^ Including Bonus of Rs. 200 per quintal.
- ^^ Including Bonus of Rs. 425 per quintal.
- @ Including Bonus of Rs. 150 per quintal

(Rs per quintal)

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