Lok Sabha Question No. 3833 (UNSTARRED), answered on 2020-03-17
Subject: Increase in MSP
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: M.K. Vishnu Prasad

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

## LOK  SABHA UNSTARRED QUESTION NO. 3833

TO BE ANSWERED ON THE 17 TH  MARCH, 2020

## INCREASE IN MSP

3833. DR. VISHNU PRASAD M.K.:

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

- (a) whether  the  Union  Government  has  recently  announced  an  increase  in  the  Minimum Support Price (MSP) for Paddy, wheat, pulses and oilseeds;
- (b) if  so,  the  details  thereof  along  with  the  details  of  the  increase  in  MSP  for  various agricultural produce during the last three years and the current year, crop-wise;
- (c) the criteria/formula adopted in increasing the MSP for wheat, pulses and oilseeds and the  reaction  of  farmers/farmers'  federations  to  the  increase  of  MSP  for  wheat,  pulses  and oilseeds;
- (d) whether  some  State  Governments  have  urged  the  Union  Government  to  review  the increase in MSP for Paddy, wheat, pulses and oilseeds in line with the recommendations of the Swaminathan Commission's report; and
- (e) if so, the details thereof along with the action taken by the Government in this regard?

## ANSWER

## MINISTER  OF AGRICULTURE AND FARMERS WELFARE

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

- (a) & (b): The  Union  Government  has  increased  the  Minimum  Support  Price  (MSP)  for Kharif and Rabi crops of 2019-20 season including Paddy, wheat, pulses and oilseeds on the line of fixing the MSP at a level of 1.5 times of the cost of production as announced in Union Budget 2018-19.  The detail  regarding  increase  in  MSP  during  the  last  four  years  is  given  in Annex.
- (c): Government fixes MSPs of 22 mandated crops including wheat, pulses and oilseeds 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. 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  MSP,  CACP  considers  various  factors  viz.  cost  of  production, overall demand-supply situations of various crops in domestic and world markets, domestic and international  prices,  inter-crop  price  parity,  terms  of  trade  between  agriculture  and  nonagriculture  sector,  likely  effect  of  price  policy  on  rest  of  economy,  rational  utilization  of  land, water and other production resources and a minimum of 50 percent as the margin over cost of production.

The views of the farmer and farmer's association are also considered by CACP before recommending MSP.

(d) & (e): Government  receives  suggestions  from  state  government  regarding  various aspect of increasing MSP. CACP seeks suggestions from different stakeholders including State Governments before recommending MSP.

National  Commission  on  Farmers  (NCF)  headed  by  Dr.  M.S.  Swaminathan  had recommended that the MSP should be at least 50 percent more than the weighted average cost of production.

The Union Budget for 2018-19 had announced the pre-determined principle to keep MSP at levels of one and half times of the cost of production. Accordingly, Government has increased the MSP for all mandated Kharif, Rabi and other commercial crops with a return of atleast 50 per cent of all India weighted average cost of production for the agricultural year 2018-19 and 2019-20.

## Annex referred to in reply to part (a) & (b) of Lok Sabha Unstarred Question No. 3833 due for reply on 17.03.2020

## Minimum Support Prices

(Rs per quintal)

| Sl. No.   | Commodity              | 2016- 17   | 2017- 18   | 2018- 19   | 2019- 20   | Absolute Increase in MSP in 2019- 20 over 2018- 19   |
|-----------|------------------------|------------|------------|------------|------------|------------------------------------------------------|
|           | KHARIF CROPS           |            |            |            |            |                                                      |
| 1         | PADDY(Common)          | 1470       | 1550       | 1750       | 1815       | 65                                                   |
|           | (Grade A)              | 1510       | 1590       | 1770       | 1835       | 65                                                   |
| 2         | JOWAR (Hybrid)         | 1625       | 1700       | 2430       | 2550       | 120                                                  |
|           | (Maldandi)             | 1650       | 1725       | 2450       | 2570       | 120                                                  |
| 3         | BAJRA                  | 1330       | 1425       | 1950       | 2000       | 50                                                   |
| 4         | MAIZE                  | 1365       | 1425       | 1700       | 1760       | 60                                                   |
| 5         | RAGI                   | 1725       | 1900       | 2897       | 3150       | 253                                                  |
| 6         | ARHAR(Tur)             | 5050       | 5450       | 5675       | 5800       | 125                                                  |
| 7         | MOONG                  | 5225       | 5575       | 6975       | 7050       | 75                                                   |
| 8         | URAD                   | 5000       | 5400       | 5600       | 5700       | 100                                                  |
| 9         | COTTON (Medium Staple) | 3860       | 4020       | 5150       | 5255       | 105                                                  |
|           | (Long Staple)          | 4160       | 4320       | 5450       | 5550       | 100                                                  |
| 10        | GROUNDNUT IN SHELL     | 4220       | 4450       | 4890       | 5090       | 200                                                  |
| 11        | SUNFLOWER SEED         | 3950       | 4100       | 5388       | 5650       | 262                                                  |
| 12        | SOYABEAN (Yellow)      | 2775       | 3050       | 3399       | 3710       | 311                                                  |
| 13        | SESAMUM                | 5000       | 5300       | 6249       | 6485       | 236                                                  |
| 14        | NIGERSEED              | 3825       | 4050       | 5877       | 5940       | 63                                                   |
|           | RABI CROPS             |            |            |            |            |                                                      |
| 1         | WHEAT                  | 1625       | 1735       | 1840       | 1925       | 85                                                   |
| 2         | BARLEY                 | 1325       | 1410       | 1440       | 1525       | 85                                                   |
| 3         | GRAM                   | 4000       | 4400       | 4620       | 4875       | 255                                                  |
| 4         | MASUR (LENTIL)         | 3950       | 4250       | 4475       | 4800       | 325                                                  |
| 5         | RAPESEED & MUSTARD     | 3700       | 4000       | 4200       | 4425       | 225                                                  |
| 6         | SAFFLOWER              | 3700       | 4100       | 4945       | 5215       | 270                                                  |
| 7         | TORIA                  | 3560       | 3900       | 4190       | 4425       | 235                                                  |
|           | OTHER CROPS            |            |            |            |            |                                                      |
| 1         | COPRA (Milling)        | 5950       | 6500       | 7511       | 9521       | 2010                                                 |
|           | (Ball)                 | 6240       | 6785       | 7750       | 9920       | 2170                                                 |
| 2         | DE-HUSKED COCONUT      | 1600       | 1760       | 2030       | 2571       | 541                                                  |
| 3         | JUTE                   | 3200       | 3500       | 3700       | 3950       | 250                                                  |

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