Lok Sabha Question No. 2582 (UNSTARRED), answered on 2022-08-02
Subject: Agricultural Expenditure
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: Parbatbhai Savabhai Patel, Naranbhai Bhikhabhai Kachhadiya, Devji Mansingram Patel

## GOVERNMENT OF INDIA MINISTRY OF AGRICULTURE & FARMERS WELFARE DEPARTMENT OF AGRICULTURE & FARMERS WELFARE

## LOK SABHA

## UNSTARRED QUESTION NO.  2582

TO BE ANSWERED ON THE 2 nd  AUGUST, 2022

## AGRICULTURAL EXPENDITURE

2582. SHRI PARBATBHAI SAVABHAI PATEL: SHRI NARANBHAI KACHHADIYA: SHRI DEVJI M. PATEL:

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 the expenditure on fertilizer, seeds, irrigation, ploughing of fields, harvesting, freight etc. is increasing but the price of the crop is not fixed in the ratio of expenditure;
- (b)   whether the Government does not ensure the procurement of crops on the prices fixed and as a result of which small and marginal farmers are continuously bound to leave farming;
- (c)   if so, the number of farmers who have migrated by giving up farming in the country during the last three years particularly in Gujarat and Rajasthan;
- (d)   whether the number of agricultural labourers in the country including Gujarat and Rajasthan is deteriorating in an alarming manner and if so, the total number of agricultural labourers; and
- (e)   whether the Government is considering to link the agricultural labourers with MNREGS to stop the migration of small, marginal farmers and agricultural labourers and if so, the details thereof?

## ANSWER

## THE MINISTER OF AGRICULTURE AND FARMERS WELFARE

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

(a):     While recommending Minimum Support Price (MSP), Commission for Agricultural Costs  and  Prices  (CACP)  considers  important  factors  like  cost  of  production,  overall demand-supply  situation,  price  trends  in  domestic  and  global  prices,  inter-crop  price parity, terms of trade between agriculture and non-agriculture sectors, likely impact of the price policy on the rest of the economy, rational utilization of land, water and other production  resources and  a minimum of 50 percent as  the margin  over the  weighted average cost of production.

CACP,  projects  the  cost  of  production  for  the  current  year  on  the  basis  of actual paid out costs, imputed value of family labour and Composite Input Price Index (CIPI).  CIPI  measures  the  change  in  input  price  over  previous  year  and  is  based  on latest price of major inputs like human labour, bullock labour, machine labour, fertilisers and manures, seeds, pesticides and irrigation.

Moreover, The Government in its 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  over  all  India weighted average cost of production from the agricultural year 2018-19 onwards.

- (b):    Government  extends  price  support  for  paddy  and  wheat  through  the  Food Corporation of India (FCI) and State Agencies. In addition to this, Oilseeds, pulses and copra  of  Fair  Average  Quality  (FAQ)  are  procured  from  registered  farmers  under Umbrella Scheme of PM-AASHA, as per extant guidelines.

(c) & (d):   According to the Periodic Labour Force Survey (PLFS), 2020-21, the Worker Population  Ratio  (WPR)  for  rural  population  in  the  State  of  Gujarat  and  Rajasthan increased  to  60.7  percent  and  59.7  percent  in  2020-21  from  52.1  percent  and  53.2 percent in 2018-19 respectively. At all India level WPR for rural population increased to 55.5 percent in 2020-21 from 48.9 percent in 2018-19.

Further, Unemployment Rate (UR) for rural population according to usual status for Gujrat and Rajasthan has reduced to 0.8 percent and 3.5 percent in 2020-21 from a level of 3.2 percent and 4.6 percent in 2018, respectively.  At all India level UR for rural population according to usual status reduced to 3.3 percent in 2020-21 from 5.0 percent in 2018-19.

- (e):    Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) is a demand driven wage employment programme which provide for the enhancement of livelihood security of the households in rural areas of the country by providing at least one  hundred  days  of  guaranteed  wage  employment  in  every  financial  year  to  every household  whose  adult  members  volunteer  to  do  unskilled  manual  work.  It  provides livelihood security, i.e. fall back options for livelihood for the rural households, when no better employment opportunity is available and mitigates to some extent push factors for migration.

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