Lok Sabha Question No. 1353 (UNSTARRED), answered on 2018-12-18
Subject: Shortcoming in MSP
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: SUMEDHANAND SARASWATI, NARANBHAI KACHHADIA, BIDYUT BARAN MAHATO, CHANDRA PRAKASH JOSHI, RAMDAS CHANDRABHANJI TADAS

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

## LOK  SABHA

## UNSTARRED QUESTION NO.1353

TO BE ANSWERED ON THE  18 TH  DECEMBER, 2018

## SHORTCOMING IN MSP

1353.    SHRI SUMEDHANAND SARSWATI: SHRI NARANBHAI KACHHADIYA: SHRI BIDYUT BARAN MAHATO: SHRI CHANDRA PRAKASH JOSHI: SHRI RAMDAS C. TADAS:

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 average or Minimum Support Price (MSP) provided  by  the  Government  to  the  farmers  for  their  produce  is  less  than  the  cost  of production of crops;
- (b) if  so,  whether  the  Government  proposes  to  formulate  any  concrete  policy  in  this regard;
- (c) if so, the details thereof; and
- (d) if not, the reasons therefor along with the details thereof?

## ANSWER

MINISTER OF  STATE IN THE  MINISTRY OF  AGRICULTURE AND  FARMERS  WELFARE

कृ ष एवं कसान कयाण मंालय म राय मंी ( SHRI PARSHOTTAM RUPALA)

(a)  to (d): Government fixes Minimum Support Prices (MSPs) of 22 mandated 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.

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  Minimum  Support  Prices  (MSPs)  for  all  notified  Kharif,  Rabi  and  other commercial crops with a return of at least 50 percent of cost of production for the season 2018-19.  This  decision  of  the  Government  was  also  a  historic  one  as  it  redeemed  the promise of fixing the MSPs at least at a level of 50 per cent return over cost of production. Details  of  MSP,  cost  and  percent  return  over  cost  for  2017-18  and  2018-19  is  given  at Annexure.

The  Government  is  working  on  a  new  market  architecture,  so  as  to  ensure  that farmers  get  remunerative  prices  on  their  produce.  These  include  setting  up  of  Gramin Agricultural  Markets  (GrAMs)  so  as  to  promote  22,000  number  of  retail  markets  in  close proximity  of  farm  gate;  competitive  and  transparent  wholesale  trade  at  APMC  through e-NAM; and a robust and pro-farmer export policy. The recently launched Umbrella Scheme 'Pradhan  Mantri  Annadata  Aay  SanraksHan  Abhiyan  (PM-AASHA)'  provides  for  a  holistic arrangement  for  assurance  of  a  remunerative  and  stable  price  environment  for  growers /farmers to increase agriculture production and productivity. This  Umbrella  Scheme comprises  Price  Support  Scheme  (PSS)  for  pulses  &  oilseeds,  Price  Deficiency  Payment Scheme (PDPS) and Pilot of Private Procurement & Stockist Scheme (PPSS) for oilseeds to ensure MSP to the farmers.

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## Annexure

## Annexure referred to in reply to part (a) to (d) of Lok Sabha Unstarred Question No. 1353 due for reply on 18.12.2018.

## Cost*, Minimum Support Price (MSP) & percent return over cost

(Rs. per quintal)

| Sl.   | Commodity              | 2017-18   | 2017-18   | 2017-18            | 2018-19   | 2018-19   | 2018-19            |
|-------|------------------------|-----------|-----------|--------------------|-----------|-----------|--------------------|
| No.   | KHARIF CROPS           | Cost      | MSP       | % Return over cost | Cost      | MSP       | % Return over cost |
| 1     | PADDY(Common)          | 1117      | 1550      | 38.8               | 1166      | 1750      | 50.1               |
| 2     | JOWAR (Hybrid)         | 1556      | 1700      | 9.3                | 1619      | 2430      | 50.1               |
| 3     | BAJRA                  | 949       | 1425      | 50.2               | 990       | 1950      | 97.0               |
| 4     | MAIZE                  | 1044      | 1425      | 36.5               | 1131      | 1700      | 50.3               |
| 5     | RAGI                   | 1861      | 1900      | 2.1                | 1931      | 2897      | 50.0               |
| 6     | ARHAR(Tur)             | 3318      | 5450      | 64.3               | 3432      | 5675      | 65.4               |
| 7     | MOONG                  | 4286      | 5575      | 30.1               | 4650      | 6975      | 50.0               |
| 8     | URAD                   | 3265      | 5400      | 65.4               | 3438      | 5600      | 62.9               |
| 9     | COTTON (Medium Staple) | 3276      | 4020      | 22.7               | 3433      | 5150      | 50.0               |
| 10    | GROUNDNUT IN SHELL     | 3159      | 4450      | 40.9               | 3260      | 4890      | 50.0               |
| 11    | SUNFLOWER SEED         | 3481      | 4100      | 17.8               | 3592      | 5388      | 50.0               |
| 12    | SOYABEAN               | 2121      | 3050      | 43.8               | 2266      | 3399      | 50.0               |
| 13    | SESAMUM                | 4067      | 5300      | 30.3               | 4166      | 6249      | 50.0               |
| 14    | NIGERSEED              | 3912      | 4050      | 3.5                | 3918      | 5877      | 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               |
| 2     | JUTE                   | 2160      | 3500      | 62.0               | 2267      | 3700      | 63.2               |
| 3     | SUGARCANE #            | 152       | 255       | 67.8               | 155       | 275       | 77.4               |