Lok Sabha Question No. 380 (UNSTARRED), answered on 2021-11-30
Subject: Difference between Market Price and MSP
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: Behanan Benny, Suresh Kodikunnil

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

## LOK SABHA

## UNSTARRED QUESTION NO. 380

TO BE ANSWERED ON THE 30 TH NOVEMBER, 2021

## DIFFERENCE BETWEEN MARKET PRICE AND MSP

380. SHRI BENNY BEHANAN :

SHRI KODIKUNNIL SURESH:

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

- (a) whether the Ministry is aware that the market prices for October 2021 are below the MSP for eight major crops, including groundnut, Bajra, Jowar, maize, tur, Arhar, moong, and paddy in Bihar including district Bhagalpur;
- (b) if so the reasons therefor;

(c) whether the National Agricultural Cooperative Marketing Federation of India (NAFED) was not able to procure adequate quantities of pulses in the Kharif and rabi season;

- (d) if so, the reasons therefor;
- (e) whether any remedial measures have been taken to address this issue; and
- (f) if so, the details thereof and if not, the reasons therefor?

## ANSWER

MINISTER OF AGRICULTURE AND FARMERS WELFARE

कृ ष एवं कसान कल् याण मंी (SHRI NARENDRA SINGH TOMAR)

- (a)  &  (b):  Crops  like  tur/Arhar,  groundnut,  jowar  and  bajra  are  not  cultivated substantially  in  Bihar.  Market  price  of  maize  is  almost  at  par  with  MSP  of  maize  in October, 2021. Procurement of summer moong is not done by the state government since surplus was not available in the market. The harvesting of paddy is still going on in many districts of Bihar and  the procurement of paddy  has started since 01.11.2021.
- (c)  & (d):      Government of  India implements Price Support Scheme (PSS) under the  umbrella  scheme  of  PM-AASHA  for  procurement  of  Fair  Average  Quality  (FAQ)  of pulses  &  oilseeds  at  Minimum  Support  Price  through  Central  Nodal  Agencies  as  and when the market price of these commodities falls below the notified MSP and proposals are received from the State/UT Government. National Agricultural Cooperative Marketing Federation  of  India  (NAFED)  is  one  of  the  Central  Nodal  Agencies  for  procurement  of pulses  &  oilseeds  under  Price  Support  Scheme  (PSS)  at  Minimum  Support  Price

(MSP).The  detail  of  procurement  of  pulses  under  PSS  at  MSP  by  NAFED  since  2019 during Kharif and Rabi Seasons is at annexure .

(e) & (f) : 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  also  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).

Oilseeds  &  pulses  of  Fair  Average  Quality  (FAQ)  are  procured  from  registered farmers  under  Price  Support  Scheme  under  Umbrella  Scheme  of  Pradhan  Mantri AnnadataAaySanraksHan Abhiyan (PM-AASHA), as per its prescribed guidelines at MSP in  consultation  with  the  concerned  State Government.  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.

## Annexure

| Details of pulses procured at MSP under PSS by NAFED since 2019-20 (as on 24.11.2021)   | Details of pulses procured at MSP under PSS by NAFED since 2019-20 (as on 24.11.2021)   | Details of pulses procured at MSP under PSS by NAFED since 2019-20 (as on 24.11.2021)   | Details of pulses procured at MSP under PSS by NAFED since 2019-20 (as on 24.11.2021)   | Details of pulses procured at MSP under PSS by NAFED since 2019-20 (as on 24.11.2021)   |
|-----------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------|
| Year                                                                                    | Season                                                                                  | Commodity                                                                               | Quantity Procured (IN MTs)                                                              | MSP Value (Rs. IN LAKH)                                                                 |
|                                                                                         | KHARIF                                                                                  | MOONG                                                                                   | 140,018.46                                                                              | 98,713.01                                                                               |
|                                                                                         | KHARIF                                                                                  | TOOR                                                                                    | 536,413.25                                                                              | 311,119.69                                                                              |
|                                                                                         | KHARIF                                                                                  | URAD                                                                                    | 132.31                                                                                  | 75.42                                                                                   |
|                                                                                         | KHARIF                                                                                  | Total                                                                                   | 676,564.02                                                                              | 409,908.12                                                                              |
| 2019-20                                                                                 | RABI                                                                                    | GRAM                                                                                    | 2,143,274.14                                                                            | 1,044,846.14                                                                            |
| 2019-20                                                                                 | RABI                                                                                    | MASOOR                                                                                  | 1,433.88                                                                                | 688.26                                                                                  |
| 2019-20                                                                                 | RABI                                                                                    | MOONG                                                                                   | 7,111.93                                                                                | 5,013.91                                                                                |
| 2019-20                                                                                 | RABI                                                                                    | Total                                                                                   | 2,151,819.95                                                                            | 1,050,548.32                                                                            |
| 2019-20                                                                                 | sub Total                                                                               | sub Total                                                                               | 2,828,383.97                                                                            | 1,460,456.43                                                                            |
| 2020-21                                                                                 | KHARIF                                                                                  | MOONG                                                                                   | 13,730.20                                                                               | 9,880.25                                                                                |
| 2020-21                                                                                 | KHARIF                                                                                  | TOOR                                                                                    | 10,987.26                                                                               | 6,592.36                                                                                |
| 2020-21                                                                                 | KHARIF                                                                                  | URAD                                                                                    | 137.16                                                                                  | 82.30                                                                                   |
| 2020-21                                                                                 | KHARIF                                                                                  | Total                                                                                   | 24,854.62                                                                               | 16,554.90                                                                               |

|         |           | GRAM      | 631,211.88   | 321,918.06   |
|---------|-----------|-----------|--------------|--------------|
|         |           | MASOOR    | 18.35        | 9.36         |
|         | RABI      | MOONG     | 153,661.00   | 110,574.46   |
|         |           | URAD      | 949.90       | 569.94       |
|         |           | Total     | 785,841.13   | 433,071.81   |
|         | Sub Total | Sub Total | 810,695.75   | 449,626.72   |
|         |           | MOONG     | 21,019.94    | 15,292.01    |
| 2021-22 | KHARIF    | URAD      | 165.19       | 104.07       |
|         |           | Total     | 21,185.13    | 15,396.08    |
|         | Sub Total | Sub Total | 21,185.13    | 15,396.08    |

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