Lok Sabha Question No. 2700 (UNSTARRED), answered on 2019-07-09
Subject: Unviable Profession
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: Devusinh Jesingbhai Chauhan

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

## LOK  SABHA UNSTARRED QUESTION NO.2700

TO BE ANSWERED ON THE  9 TH  JULY, 2019

## UNVIABLE PROFESSION

2700.  SHRI DEVUSINH JESINGBHAI CHAUHAN:

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

- (a) whether  it  is  a  fact  that  agriculture  has  become  an  unprofitable  profession  for  the farmers due to rise in the input costs during the last few years and if so, the details thereof along with the reasons therefor;
- (b) whether  the  Government  is  aware  that  Minimum  Support  Price  (MSP)  of  the foodgrains  is  less  than  the  retail  market  price,  if  so,  the  details  thereof  and  the  reasons therefor;
- (c) whether  the  Government  has  held  consultations  with  the  various  stakeholders including  representatives  of  farmers  to  make  agriculture  a  viable  profession  and  if  so,  the details thereof; and
- (d) the other measures taken/proposed to be taken by the Government for improving the condition of agriculture sector?

## ANSWER

MINISTER OF AGRICULTURE AND FARMERS WELFARE

कृ ष एवं कसान कयाण मंी ( SHRI NARENDRA SINGH TOMAR)

- (a): The  agricultural  price  policy  of  the  Government  is  aimed  at  providing  remunerative price to farmers. For this purpose, Government declares Minimum Support Prices (MSPs) for 22 mandated agricultural crops and fair and remunerative price(FRP) for sugarcane which account  for  99  percent  of  the  agricultural  production  (does  not  include  horticulture)  in  the country. As productivity level, cost and returns vary in the country depending on agro-climatic conditions,  MSPs are being fixed after providing for a 50% margin over all India weighted average  cost  of  production.  A  statement  showing  cost,  MSP  and  returns  of  22  mandated agricultural crops for last 3 years is at Annex -I.

Government also implements Market Intervention Scheme (MIS) for horticultural crops which are perishable in nature and some agricultural crops which are not covered under the MSP on the request of State/UT Government concerned. The objective of intervention is to protect the growers of these commodities from making distress sale in the event of a bumper crop during the peak arrival period when the prices tend to fall below economic levels and cost of production.

(b): The prices of agricultural produce are determined by supply and demand conditions in the  market  on  a  day-to-day  basis.  Wholesale    prices  of  agricultural  produce  tend  to  fall immediately after harvest due to increase in market arrival of new crops in a lumpy manner. However, retail prices of milled agricultural products are generally much higher than MSP. Details of MSP and retail prices of foodgrains are given at Annex 2.

(c) & (d): Government  receives  representations  from  time  to  time  on  various  issues concerning agriculture sector. Government is committed to farmer's welfare and towards this objective it has changed its strategy from being production centric to an income centric one. Accordingly, Government has increased MSPs for all mandated crops with a return of at least 50 percent over all India weighted average cost of production for the season 2018-19.

Apart  from  increasing  MSPs,  Government  has  taken  several  steps  to  provide remunerative  prices  to  farmers  for  their  produce  which  include  undertaking  procurement through  designated  procurement  agencies,  implementing  e-National  Agriculture  Market  (eNAM),  enacting  the  Model  Agricultural  Produce  and  Livestock  Marketing  (Promotion  & Facilitation) Act, 2017 and promoting Farmer Producer Organizations (FPOs).

The Government is working on a 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  Umbrella  Scheme  'Pradhan  Mantri   Annadata   Aay SanraksHan   Abhiyan'  (PM-AASHA)  announced  by  the  government  is  also  a  progressive step in this direction. The Umbrella Scheme consists of three sub-schemes i.e. Price Support Scheme  (PSS),  Price  Deficiency  Payment  Scheme  (PDPS)  and  Private  Procurement  & Stockist Scheme (PPSS) on a pilot basis.

Interim  Union  Budget  2019  had  announced  a  historic  programme  namely  'Pradhan Mantri  KIsan  SAmman  Nidhi  (PM-KISAN)'.  Under  this  programme,  landholding  farmer families will be provided direct income support at the rate of Rs. 6,000 per year. The PMKISAN scheme aims to supplement the financial needs of the farmers in procuring various inputs  to  ensure  proper  crop  health  and  appropriate  yields,  commensurate  with  the anticipated farm income at the end of the each crop cycle.

## Annexure- I

## Annexure referred to in reply to part (a) of Lok Sabha Unstarred Question No. 2700 due for reply on 09.07.2019.

## Cost*, MSP and Return

|         | Commodity              | 2016-17   | 2016-17   | 2016-17            | 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 | Cost*     | MSP       | % Return over Cost |
| 1       | PADDY(Common)          | 1045      | 1470      | 40.7               | 1117      | 1550      | 38.8               | 1166      | 1750      | 50.1               | 1208      | 1815      | 50.2               |
|         | (Grade A)^             |           | 1510      |                    |           | 1590      |                    |           | 1770      |                    |           | 1835      |                    |
| 2       | JOWAR (Hybrid)         | 1501      | 1625      | 8.3                | 1556      | 1700      | 9.3                | 1619      | 2430      | 50.1               | 1698      | 2550      | 50.2               |
|         | (Maldandi) ^           |           | 1650      |                    |           | 1725      |                    |           | 2450      |                    |           | 2570      |                    |
| 3       | BAJRA                  | 925       | 1330      | 43.8               | 949       | 1425      | 50.2               | 990       | 1950      | 97.0               | 1083      | 2000      | 84.7               |
| 4       | MAIZE                  | 966       | 1365      | 41.3               | 1044      | 1425      | 36.5               | 1131      | 1700      | 50.3               | 1171      | 1760      | 50.3               |
| 5       | RAGI                   | 1733      | 1725      | -0.5               | 1861      | 1900      | 2.1                | 1931      | 2897      | 50.0               | 2100      | 3150      | 50.0               |
| 6       | ARHAR(Tur)             | 3241      | 5050      | 55.8               | 3318      | 5450      | 64.3               | 3432      | 5675      | 65.4               | 3636      | 5800      | 59.5               |
| 7       | MOONG                  | 4065      | 5225      | 28.5               | 4286      | 5575      | 30.1               | 4650      | 6975      | 50.0               | 4699      | 7050      | 50.0               |
| 8       | URAD                   | 3584      | 5000      | 39.5               | 3265      | 5400      | 65.4               | 3438      | 5600      | 62.9               | 3477      | 5700      | 63.9               |
| 9       | COTTON (Medium Staple) | 2889      | 3860      | 33.6               | 3276      | 4020      | 22.7               | 3433      | 5150      | 50.0               | 3501      | 5255      | 50.1               |
|         | (Long Staple) ^        |           | 4160      |                    |           | 4320      |                    |           | 5450      |                    |           | 5550      |                    |
| 10      | GROUNDNUT IN SHELL     | 3371      | 4220      | 25.2               | 3159      | 4450      | 40.9               | 3260      | 4890      | 50.0               | 3394      | 5090      | 50.0               |
| 11      | SUNFLOWER SEED         | 3479      | 3950      | 13.5               | 3481      | 4100      | 17.8               | 3592      | 5388      | 50.0               | 3767      | 5650      | 50.0               |
| 12      | SOYABEAN (Yellow)      | 1852      | 2775      | 49.8               | 2121      | 3050      | 43.8               | 2266      | 3399      | 50.0               | 2473      | 3710      | 50.0               |
| 13      | SESAMUM                | 4188      | 5000      | 19.4               | 4067      | 5300      | 30.3               | 4166      | 6249      | 50.0               | 4322      | 6485      | 50.0               |
| 14      | NIGERSEED              | 3366      | 3825      | 13.6               | 3912      | 4050      | 3.5                | 3918      | 5877      | 50.0               | 3960      | 5940      | 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               |           |           |                    |
|         | OTHERCROPS             |           |           |                    |           |           |                    |           |           |                    |           |           |                    |
| 1       | COPRA (Milling)        | 4676      | 5950      | 27.2               | 4758      | 6500      | 36.6               | 5007      | 7511      | 50.0               | 6347      | 9521      | 50.0               |
|         | (Ball)^                |           | 6240      |                    |           | 6785      | 42.6               |           | 7750      |                    |           | 9920      |                    |
| 2       | JUTE                   | 2125      | 3200      | 50.6               | 2160      | 3500      | 62.0               | 2267      | 3700      | 63.2               | 2535      | 3950      | 55.8               |

## Annexure referred to in reply to part (b) of Lok Sabha Unstarred Question No.2700 due for reply on 09.07.2019. MSP and retail prices of foodgrains

(Rs./quintal)

|              | 2017-18   | 2017-18       | 2018-19   | 2018-19       |
|--------------|-----------|---------------|-----------|---------------|
| Commodities  | MSP       | Retail Prices | MSP       | Retail Prices |
| Kharif Crops |           |               |           |               |
| Rice*        | 2325      | 4528          | 2625      | 4583          |
| Jowar        | 1700      | 2806          | 2430      | 2837          |
| Bajra        | 1425      | 2322          | 1950      | 2330          |
| Maize        | 1425      | 2386          | 1700      | 2325          |
| Ragi         | 1900      | 4055          | 2897      | 3785          |
| Arhar        | 5450      | 7564          | 5675      | 7270          |
| Moong        | 5575      | 7972          | 6975      | 7761          |
| Urad         | 5400      | 8733          | 5600      | 7487          |

## (Rs./quintal)

|                | 2017-18   | 2017-18       | 2018-19   | 2018-19       |
|----------------|-----------|---------------|-----------|---------------|
| Commoditie s   | MSP #     | Retail Prices | MSP ##    | Retail Prices |
| Rabi Crops     |           |               |           |               |
| Wheat          | 1625      | 2605          | 1735      | 2626          |
| Gram           | 4000      | 7446          | 4400      | 6279          |
| Masur (Lentil) | 3950      | 6894          | 4250      | 6288          |

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