Lok Sabha Question No. 1440 (UNSTARRED), answered on 2020-02-11
Subject: Steps to Increase Farmers Income
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: Sumedhanand Saraswati, Sudhakar Tukaram Shrangre, Devji Mansingram Patel, Pratima Bhoumik

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

## LOK  SABHA

## UNSTARRED QUESTION NO. 1440

TO BE ANSWERED ON THE 11 TH  FEBRUARY, 2020

## STEPS TO INCREASE FARMERS INCOME

1440.  SHRI SUMEDHANAND SARASWATI: SHRI SUDHAKAR TUKARAM SHRANGARE: SHRI DEVJI M. PATEL: MS. PRATIMA BHOUMIK:

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

(a) whether in order to double the income of farmers, the Government proposes to take into  account  the  various  cash  and  non-cash  input  costs  involved  in  agriculture  and  crop production like seeds, fertilizers, pesticides, labour, manure, rent of machines, family labour including  rent  of  land,  lease  rent  and  other  interest  on  agricultural  capital  other  than  land while fixing the Minimum Support Price under pricing process;

- (b) if so, the details in this regard;
- (c) whether  the  farmers  are  getting  only  six  per  cent  of  the  benefit  of  the  Minimum Support Price; and
- (d) if  so,  the  steps  taken  by  the  Government  to  cover  all  the  farmers  of  the  country, including Rajasthan and Tripura under Minimum Support Price?

## ANSWER

## MINISTER OF AGRICULTURE AND FARMERS WELFARE

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

(a) to (d): Commission for Agricultural  Costs  and  Prices  (CACP)  uses  crop-wise,  statewise cost estimates provided by the Directorate of Economics & Statistics (DES), DAC&FW compiled under 'Comprehensive Scheme (CS) for Studying the Cost of Cultivation (CoC) of Principal Crops in India'. Since CS data is generally available with a time lag of two to three years  given  the  imperative  of  recommending  pricing  policy  for  ensuing  season,  cost estimates need to be projected for the crop season under consideration.  Based on CS data, the Commission projects crop-wise, State-wise CoC of mandated crops for the subsequent season.  Composite Input Price Indices (CIPIs) based on latest prices of major inputs like human  labour,  bullock  labour,  machine  labour,  fertilizers,  manures,  seeds,  pesticides  and irrigation is constructed, costs of interest on working capital, miscellaneous charges, rental value of owned land, rent paid for leased-in land, land revenue, taxes & cesses, depreciation on implements & farm buildings and interest on fixed capital are also included in the cost.

Based  on  the  latest  data  available  from  different  sources  like  Labour  Bureau,  Ministry  of Labour  and  Employment,  State  Governments  and  Office  of  Economic  Adviser,  Ministry  of Commerce  and  Industry  and  CIPIs  thus  constructed,  the  Commission  projects  crop-wise, State-wise cost of production (CoP) A2, A2+FL and C2, from these projected CoCs using projected yield. Subsequently, all-India estimates of CoP A2, A2+FL, C2 are derived based on crop-wise, State-wise projected CoPs and their production shares.  These projected allIndia estimates of CoP are considered by the Commission while formulating national level price policy recommendations & MSP.

The  procurement  policy  of  Government  of  India  (GOI)  is  open  ended,  under  which paddy and wheat offered by farmers all over the country including in Rajasthan and Tripura within the stipulated period (conforming to specifications prescribed in advance by GOI) are purchased for Central Pool at Minimum Support Price (MSP) by Food Corporation of India (FCI)/State Governments/State Government Agencies to help farmers get remunerative price and prevent distress cell.  However, if any producer/farmer gets better price in comparison to MSP, he/she is free to sell his/her produce in open market. Coarse grains are procured at MSP by State Government as per the procurement plan prepared in consultation with FCI and approved by the Central Government.

A  Price  Support  Scheme  (PSS)  for  procurement  of  oilseeds,  pulses  and  cotton  is implemented by DAC&FW through Central Nodal Agencies at the Minimum Support Price (MSP)  declared  by  the  Government  subject  to  certain  conditions  being  met  by  the  State Governments.  Losses,  if  any,  are  reimbursed  by  the  Government  of  India  to  the  Central Nodal Agencies. Market Intervention Scheme (MIS) is implemented to protect the growers of crops not covered under MSP scheme from making distress sale.

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