Lok Sabha Question No. 1309 (UNSTARRED), answered on 2018-12-18
Subject: MSP of Crops
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: SONA RAM CHOUDHARY, RAJIV PRATAP RUDY, JAY PRAKASH NARAYAN YADAV

O.I.H

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

## LOK  SABHA

## UNSTARRED QUESTION NO.1309

TO BE ANSWERED ON THE 18 TH  DECEMBER, 2018

## MSP OF CROPS

1309.     COL.  SONARAM CHOUDHARY: SHRI  RAJIV PRATAP RUDY: SHRI JAI PRAKASH NARAYAN YADAV:

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

- (a) the  details  regarding  the  total number  of  farmers  who  have  been benefitted/will be benefitted by the recent increase in MSP for kharif crops at a high level of at least 150 per cent of the cost of production along with the total number of farmers  benefited  from  MSP  in  the last four years;
- (b) the  steps  taken  by  the  Government  to  ensure  that  the  farmers  who  are  not  aware  of MSP are able to avail MSP;
- (c) the  policy  for  fixing  MSP  for agricultural  produce  and  the  mechanism functioning in this regard along with the criteria  by  which  the  Government  fixes MSP, crop-wise;
- (d) whether  the  Government  plans  to  include  more  crops  under  MSP,  if  so,  the  details thereof;
- (e) whether  the  National  Commission  on  Agriculture  has  recommended/demanded  to    fix the    Minimum    Support    Price    for  agricultural  produce  atleast  more  than  50  per  cent  of  the average production cost, if so, the details thereof;
- (f) whether the Government is taking/ proposes to take any concrete steps in the direction of fixing the Minimum Support Price for agricultural produce according to average production cost; and
- (g) whether  the  income  of  the  farmers  has  been  doubled  in  the  year  of  2018-19  in comparison to 2014-15 and if so, the annual income of the farmers, State-wise?

## 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): Details  of  number  of  farmers  benefited  from  procurement  of  kharif  crops  at  minimum support price (MSP) from 2015-16 to 2018-19 is given below :

| Commodity   | Number of Farmers benefitted   | Number of Farmers benefitted   |         |          |
|-------------|--------------------------------|--------------------------------|---------|----------|
|             | 2015-16                        | 2016-17                        | 2017-18 | 2018-19  |
| Paddy       | 7831399                        | 7423783                        | 7232216 | 3156982* |
| Tur         | No procurement                 | 399873                         | 788672  | 174091** |
| Moong       | No procurement                 | 62634                          | 234374  | 173044** |
| Urad        | No procurement                 | No procurement                 | 244429  | 148556** |
| Groundnut   | No procurement                 | 109240                         | 545271  | 82201**  |
| Soyabean    | No procurement                 | No procurement                 | 42535   | 8719**   |

Source: Department of Food & Public Distribution and National Agricultural Cooperative Marketing Federation of India Ltd (NAFED)

- (b): Government  gives  wide  publicity  of  the  MSPs  fixed  by  the  Government  through  various modes of communications like announcement on Press Information Bureau, dissemination through social media and m-kisan portal in regional language and other radio programmes like Kisan Vani and panel discussions on DD Kisan. Government also communicates to all Central Ministries and States/UT Governments concerned for necessary action in this regard.
- (c): Government fixes  MSPs  of  22  mandated  agricultural  crops  and  fair  &  remunerative  price (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 and considering 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.

While recommending MSPs, CACP considers the cost of production and host of factors such as  demand-supply  situation,  trends  in  domestic  and  international  prices,  inter-crop  price  parity, terms  of  trade  between  agricultural  and  non-agricultural  sectors  and  the  likely  impact  of  MSP  on consumers and overall economy along with rational utilization of scarce natural resources like land and water. 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.

- (d): Currently, there is no proposal to include more crops under MSP.
- (e) & (f): The National Commission on Farmers (NCF) headed by Dr. M. S. Swaminathan has recommended that the MSP should be at least 50 percent more than the weighted average cost of production. However, when the National Policy for Farmers, 2007 was finalized, this recommendation of providing 50 per cent returns over cost of production was not included. Dr.  M. S. Swaminathan in his Report on NCF had discussed different dimensions of fixing MSPs, but while finalizing National Policy on Farmers, the then Government had accepted the current established methods.

Government has substantially increased MSPs for all mandated crops for the season 201819 . 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.

- (g): The National Sample Survey Office (NSSO) conducted the 'Situation Assessment Survey of Agricultural Households' for the reference Agricultural Year 2012-13 which, inter-alia , estimated the average monthly income per agricultural household at Rs. 6426/-.

The next 'Situation Assessment Survey of Agricultural Households' has been decided to be conducted  during  NSSO's  77 th round  (January  2019-  December  2019)  with  reference  to  the agricultural year July 2018-June 2019

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