Lok Sabha Question No. 2 (STARRED), answered on 2021-02-02
Subject: Legalisation of MSP
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: Deepak Baij, Kaushalendra Kumar

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

## LOK  SABHA STARRED QUESTION NO. 2

TO BE ANSWERED ON THE   2 ND   FEBRUARY, 2021

## LEGALISATION OF MSP

- †*2.   SHRI DEEPAK BAIJ: SHRI KAUSHALENDRA KUMAR:

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

- (a) whether  the  Government  intends  to  legalise  Minimum  Support  Price  (MSP)  for various produce of farmers and make MSP a legal right to the farmers;
- (b) if so, the details thereof and if not, the reasons therefor;
- (c) the percentage of farmers getting the benefit of MSP at present;
- (d) the  details  of  the  steps  taken  to  provide  the  benefit  of  MSP  to  more  and  more farmers; and
- (e) the measures undertaken/proposed to be undertaken by the Government to prevent procurement outside mandis below MSP?

## ANSWER

## MINISTER OF AGRICULTURE AND FARMERS WELFARE

कृ ष एवं कसान कयाण मंी

(SHRI NARENDRA  SINGH TOMAR)

- (a) to (e): A statement is laid on the Table of the House.

## STATEMENT  REFERRED  TO  IN  REPLY  TO  PARTS  (a)  TO  (e)  OF  LOK  SABHA STARRED QUESTION NO.  2   DUE FOR REPLY ON 2 ND  FEBRUARY, 2021.

- (a) & (b): Government of India announces Minimum Support Prices (MSP) for 22 major agricultural commodities of Fair Average Quality (FAQ) each year in both the Crop seasons after taking into account the recommendations of the Commission for Agricultural Costs and Prices (CACP). Government also extends remunerative price to farmers through its various interventions schemes.
- (c): The procurement at MSP is being done by Central and State Agencies under various schemes of Government. Besides, the overall market also responds to declaration of MSP and Government's procurement operations which results in private procurement on or above the  MSP for various notified crops. Therefore, accurate number of farmers benefiting from MSP  declaration  is  difficult  to  assess.  However,  the  farmers  benefitted  from  Government procurement at MSP for major crops is attached at    Annexure-I.
- (d) & (e): Government  extends  price  support  for  paddy  and  wheat  through  the  Food Corporation of India (FCI) and State Agencies. Under this policy, whatever food grains are offered by farmers within the stipulated period & conforming to the specifications prescribed by Government are purchased at Minimum Support Price (MSP) by the State Government agencies including FCI for Central Pool.  It aims to service the National Food Security Act (NFSA) and other welfare schemes of the Government so that subsidized food grains are supplied to the poor and needy, and to build up buffer stocks of food grains to ensure food grain  security.  Further,  different  types  of  nutri-cereals  and  maize  are  procured  by  State Governments  itself  in consultation with FCI  to the extent that  the  concerned  State Government may utilise the same for distribution under Targeted Public Distribution System (TPDS) as well as Other Welfare Schemes (OWS).

-2-

Oilseeds,  pulses  and  copra  of  Fair  Average  Quality  (FAQ)  are  procured  from registered farmers under Price Support Scheme under Umbrella Scheme of Pradhan Mantri Annadata  Aay  SanraksHan  Abhiyan (PM-AASHA), as per its prescribed guidelines at MSP in  consultation  with  the  concerned  State  Government  as  and  when  market  price  of  these produce fall below the MSP. Under PM-AASHA, States / UTs are offered to choose either Price  Support  Scheme  (PSS)  or  Price  Deficiency  Payment  Scheme  (PDPS)  in  a  given procurement  season  with  respect  to  particular  oilseeds  crop  for  the  entire  State.  Further, States have the option to roll out Private Procurement and Stockist Scheme (PPSS) on pilot basis in district / selected APMC(s) of district involving the participation of private stockist for oilseeds.  Cotton  and  Jute  are  also  procured  by  Government  at  MSP  through  Cotton Corporation of India (CCI) and Jute Corporation of India (JCI).

For making effective procurement by government agencies at   MSP  and providing maximum benefits of MSP to the farmers, procurement centres are  opened by respective State Government Agencies and Central Nodal Agencies like NAFED, FCI etc  after taking into  account the production, marketable surplus, convenience of farmers and availability of other  logistics/  infrastructure  such  as  storage  and  transportation  etc.  Large  number  of  the purchase centres in addition to the existing Mandis and depots/godowns are also established at  key  points  for  the  convenience  of  farmers  to  ensure  procurement  at  MSP  and  also  to prevent sale below MSP.

## ANNEXURE-I

| Farmers benefitted on Govt. Procurement at MSP   | Farmers benefitted on Govt. Procurement at MSP   |
|--------------------------------------------------|--------------------------------------------------|
| Commodity                                        | 2019-20                                          |
| Pulses                                           | 11,00,720                                        |
| Copra                                            | 3,439                                            |
| Oilseeds                                         | 8,42,238                                         |
| Wheat                                            | 35,57,080                                        |
| Paddy                                            | 1,24,59,354                                      |
| Cotton                                           | 21,50,000                                        |
| Jute                                             | 3,744                                            |

## Note:-

- 1) Presently, the procurement for Kharif Marketing Season 2020-21 is ongoing.
- 2) Some farmers are also selling multiple crops.
- 3) The number of farmers benefitted due to procurement of Nuti-cereal and maize in not included.
- 4) Some procurement made at MSP by the State Agencies under State/UT account is not included.
- 5) The market rates of some MSP notified crops also prevails above its MSP, hence no procurement at MSP is required in such cases.

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