Lok Sabha Question No. 1249 (UNSTARRED), answered on 2021-07-27
Subject: Inclusion of Fuel Price in MSP
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: Deepak Baij

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

## LOK SABHA UNSTARRED QUESTION NO. 1249

TO BE ANSWERED ON THE 27 th  JULY, 2021

## INCLUSION OF FUEL PRICE IN MSP

## 1249.      SHRI DEEPAK BAIJ:

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

- (a)  whether the Government is likely to take into account the regularly rising prices of petrol, diesel and domestic gas while determining the Minimum Support Price (MSP) for crops, and fix it at the rate of per kilogram basis to adjust for per litre increase in fuel;
- (b)  the increased cost incurred by farmers due to constant rising prices of petrol, diesel and domestic gas during the last five years; and
- (c)  the manner in which rising cost incurred by farmers is assessed in determining the Minimum Support Price?

## ANSWER

THE MINISTER OF AGRICULTURE AND FARMERS WELFARE

कृ ष एवं कसान कयाण मंी      (

SHRI NARENDRA SINGH TOMAR)

- (a):    Government fixes Minimum Support Prices (MSP) on the basis of recommendations of Commission  for  Agriculture  Cost  &  Prices  (CACP)  as  well  as  consultation  with  other stakeholders. CACP considers various factors including actual cost of cultivation as well as Composite Input Price Index (CIPI) while recommending MSP, which is expressed in terms of Rs. per quintal.
- (b):      The  details  of  cost  of  production  in  the  last  five  years  for  mandated  MSP  crops  are given in Annex.

(c):    Cost of production is one of the important factors in the determination of MSP. While recommending  its price policy, the CACP  considers  all costs in a comprehensive manner. The  costs  include  all  paid  out  costs  such  as  those  incurred  on  account  of  hired human labour, bullock labour/machine labour, rent paid for leased in land, expenses incurred in  cash  and  kind  on  the  use  of  material  inputs  like  seeds,  fertilizers,  manures,  irrigation charges,  depreciation  on  implements  and  farm  buildings,  interest  on  working  capital, diesel/electricity for operation of pump sets etc., miscellaneous expenses and imputed value of family labour.

In  addition  to  cost  of  production  CACP  also  considers  various  other  factors  while recommending  MSP  which  include  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 non-agriculture sector, likely effect of price policy on rest of economy and a minimum of 50 percent as the margin over cost of production.

## Annex referred to in reply to part (b) of Lok Sabha Unstarred Question No. 1249 due for reply on 27.07.2021

## Cost of Production (A2+FL) (2016-2021) in Rs per quintal

| S. NO.   | COMMODITY/YEAR         | 2016-17   | 2017-18   | 2018-19   | 2019-20   | 2020-21   | 2021-22   |
|----------|------------------------|-----------|-----------|-----------|-----------|-----------|-----------|
|          | KHARIF CROPS           |           |           |           |           |           |           |
| 1        | PADDY(Common)          | 1045      | 1117      | 1166      | 1208      | 1245      | 1293      |
| 2        | JOWAR (Hybrid)         | 1501      | 1556      | 1619      | 1698      | 1746      | 1825      |
| 3        | BAJRA                  | 925       | 949       | 990       | 1083      | 1175      | 1213      |
| 4        | RAGI                   | 1733      | 1861      | 1931      | 2100      | 2194      | 2251      |
| 5        | MAIZE                  | 966       | 1044      | 1131      | 1171      | 1213      | 1246      |
| 6        | TUR (Arhar)            | 3241      | 3318      | 3432      | 3636      | 3796      | 3886      |
| 7        | MOONG                  | 4065      | 4286      | 4650      | 4699      | 4797      | 4850      |
| 8        | URAD                   | 3584      | 3265      | 3438      | 3477      | 3660      | 3816      |
| 9        | COTTON (Medium Staple) | 2889      | 3276      | 3433      | 3501      | 3676      | 3817      |
| 10       | GROUNDNUT IN SHELL     | 3371      | 3159      | 3260      | 3394      | 3515      | 3699      |
| 11       | SUNFLOWER SEED         | 3479      | 3481      | 3592      | 3767      | 3921      | 4010      |
| 12       | SOYABEAN               | 1852      | 2121      | 2266      | 2473      | 2587      | 2633      |
| 13       | SESAMUM                | 4188      | 4067      | 4166      | 4322      | 4570      | 4871      |
| 14       | NIGERSEED              | 3366      | 3912      | 3918      | 3960      | 4462      | 4620      |
|          | RABI CROPS             |           |           |           |           |           |           |
| 1        | WHEAT                  | 797       | 817       | 866       | 923       | 960       |           |
| 2        | BARLEY                 | 816       | 845       | 860       | 919       | 971       |           |
| 3        | GRAM                   | 2241      | 2461      | 2637      | 2801      | 2866      |           |
| 4        | MASUR (LENTIL)         | 2174      | 2366      | 2532      | 2727      | 2864      |           |
| 5        | RAPESEED& MUSTARD      | 1871      | 2123      | 2212      | 2323      | 2415      |           |
| 6        | SAFFLOWER              | 3049      | 3125      | 3294      | 3470      | 3551      |           |
|          | OTHER CROPS            |           |           |           |           |           |           |
| 1        | COPRA (Milling)        | 4676      | 4758      | 5007      | 6347      | 6639      | 6805      |
| 2        | JUTE                   | 2125      | 2160      | 2267      | 2535      | 2709      | 2832      |

Cost Includes all paid out costs such as those incurred on account of hired human labour, bullock labour/machine labour, rent paid for leased in land, expenses incurred on use of material inputs like seeds, fertilizers, manures, irrigation charges, depreciation on implements and farm buildings, interest on working capital, diesel/electricity for operation of pump sets etc, miscellaneous expenses & imputed value of family labour.

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