Lok Sabha Question No. 3410 (UNSTARRED), answered on 2023-03-21
Subject: Rising Wheat Prices
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: Rajendra Dhedya  Gavit

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

## LOK SABHA UNSTARRED QUESTION NO. 3410

TO BE ANSWERED ON THE 21 ST  MARCH, 2023

## RISING WHEAT PRICE

3410.  SHRI RAJENDRA DHEDYA GAVIT :

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

(a) whether the Government has any plan to tackle the targeted wheat procurement since MSP is about Rs. 200-300 per quintal below the Mandi price keeping in view of the current higher trend of wheat prices in the mandis in Madhya Pradesh, Maharashtra and Gujarat;

(b) whether the lesser MSP of wheat in comparison to Mandi rates was the reason for low procurement than the target fixed in 2022; and

(c) if so, the details thereof and whether the Government has any proposal to increase the MSP for wheat during 2023-24 to achieve the target fixed?

## ANSWER

## MINISTER OF AGRICULTURE AND FARMERS WELFARE

क ृ िष एवं िकसान क  याण मंी (SHRI NARENDRA SINGH TOMAR)

(a) to (c): The estimates for procurement of Paddy (in terms rice) and wheat are finalized by Government of India in consultation with State Governments and Food Corporation of India, before  the  commencement  of  each  marketing  season  based  upon  estimated  production, marketable surplus and agricultural  crop  pattern.  Procurement  in  a  State  depends  not only production but also upon other multiple factors like marketable surplus, MSP, prevailing market rate, demand & supply situation and participation of private traders etc.

Accordingly, in consultation with States Govt. and Food Corporation of India estimates of 341.50 LMT of wheat for procurement under central pool for RMS (Rabi Marketing Season) 2023-24 has been fixed. Further, all States are also allowed to start procurement as far as possible by 15.03.2023 during RMS 2023-24 as per harvest arrival in mandies/procurement centres.

During  RMS  2022-23,  the  estimated  wheat  production  was  lower  side  due  to  early summer. Also, there was a rise in global prices of wheat due to various geo-political reasons. Wheat farmers across the country were benefitted from the higher market rates as majority of farmers sold their produce to the private traders at higher market rate in comparison to the MSP.

Further, to contain inflationary trends in food economy and to stabilize the market prices, Open  Market  Sale  Scheme  (Domestic)  [OMSS(S)]  policy  for  the  year  2023,  issued  on 26.01.2023, was reviewed and subsequently the reserve price of wheat was reduced to Rs. 2150 per Qtl. (Pan India) for FAQ wheat and Rs. 2125 per Qtl. (Pan India) for URS  (under relaxed specifications) wheat. In addition to this, 50 LMT of wheat from FCI stock has been decided to offload under OMSS(D), 2023 upto 31.03.2023.

Government fixes Minimum Support Prices (MSPs) of 22 mandated agricultural crops including wheat on the basis of the recommendation of Commission for Agricultural Costs & Prices  (CACP),  after  considering  the  views  of  concerned  State  Governments  and  Central Ministries/Departments and other relevant factors. While recommending MSPs, CACP considers important  factors  like cost of production, overall  demand-supply situation of various crops in domestic and world markets, domestic and international prices, inter-crop  price parity,  terms of  trade between agricultural  and non-agricultural sector, likely effect of price policy on rest of the economy and a minimum of 50 percent as the margin over cost of production.

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