Lok Sabha Question No. 4286 (UNSTARRED), answered on 2022-03-29
Subject: Adequate Remuneration to Farmers
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: Harsimrat Kaur Badal

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

## LOK SABHA UNSTARRED QUESTION NO. 4286

TO BE ANSWERED ON THE 29 TH  MARCH, 2022

## ADEQUATE REMUNERATION TO FARMERS

4286.  SHRIMATI HARSIMRAT KAUR BADAL :

Will the Minister of AGRICULTURE AND FARMERS WELFARE कृ षएवंकसानकल् याणमंी be pleased to state:

- (a) whether the farmers in the country are not able to sell their crops and are not getting remunerative price which is 50% more than the input costs and value of production;
- (b) if so, the details and the steps taken by the Government in this regard;
- (c) whether the Government has allayed the apprehensions of farmers that the Government's  model  mechanism  of  CACP  which  calculates  cost  of  inputs  to determine the MSP is not faulty; and
- (d) if so, the action taken thereon?

## ANSWER

## MINISTER OF AGRICULTURE AND FARMERS WELFARE

कृ षएवंकसानकल् याणमंी (SHRI NARENDRA SINGH TOMAR)

- (a) to (d) : 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),  after  considering  the  views  of  State Governments  and  Central  Ministries/Department  concerned  and  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.  The  Union  Budget  for 2018-19 had announced the pre-determined principle to keep MSP at levels of at least  one and half  times of the  cost  of  production.  Accordingly, Government had increased the MSPs for all mandated Kharif, Rabi and other commercial crops with a return of at least 50 per cent over all India weighted average cost of production from the agricultural year 2018-19. Government also extends remunerative price to farmers through its various interventions schemes. 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.

Government extends price support for paddy and wheat through the Food Corporation  of  India  (FCI)  and  State  Agencies.  Further,  different  types  of  nutricereals 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).  Oilseeds,  pulses  and  copra  of  Fair  Average  Quality (FAQ) are  procured  from  registered  farmers  under  Price  Support  Scheme  under Umbrella Scheme of Pradhan MantriAnnadataAaySanraksHanAbhiyan (PMAASHA),  as  per  its  prescribed  guidelines  at  MSP  in  consultation  with  the concerned State Government. 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  centers  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 centers in addition to the existing mandis and depots/godowns are also established at key points for the convenience of farmers.

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