Lok Sabha Question No. 76 (STARRED), answered on 2023-02-07
Subject: Difference in Market Price and MSP
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: Uttam Kumar Nalamada Reddy

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

## LOK SABHA

## STARRED QUESTION NO.76

TO BE ANSWERED ON THE 7 TH FEBRUARY, 2023

## DIFFERENCE IN MARKET PRICE AND MSP

- *76.  SHRI UTTAM KUMAR REDDY NALAMADA:

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

(a)    The number of days when the Market Prices was at or above Minimum Support Price (MSP) for Paddy, Maize, Tur, Urad, Moong and Groundnut year-wise since 2019; (b)    The figure for average percentage difference between Market Price and MSP for the above crops, State-wise and year-wise since 2019; (c)     The expenditure made by the Government on Price Support Scheme (PSS), Market Intervention  Scheme  (MIS)  and  Pradhan  Mantri  Annadata  Aay  Sanrakshan  Abhiyan (PM-AASHA) during the said period; and (d)    The quantities purchased under PSS, MIS and PM-AASHA schemes during this period, crop-wise?

## ANSWER

MINISTER OF AGRICULTURE AND FARMERS WELFARE कृ िष एवं कसान कयाण मंी (SHRI NARENDRA SINGH TOMAR) (a) to (d):      A statement is laid on the Table of the House.

## STATEMENT REFERRED TO IN REPLY TO PART (a) to (d) OF LOK SABHA STARRED QUESTION NO. 76 DUE FOR  ANSWER ON 07.02.2023  REGARDING DIFFERENCE IN MARKET PRICE AND MSP.

(a) to (d): Government  fixes  Minimum  Support  Prices  (MSPs)  for  22  mandated agricultural crops and Fair & Remunerative Price (FRP) for sugarcane on the basis of the recommendations  of  the  Commission  for  Agricultural  Costs  &  Prices  (CACP),  after considering the views of State Governments and Central Ministries/Departments concerned. MSPs are announced every year, well before the sowing season so that the farmers can take an informed decision for sowing a particular crop.While recommending  the MSP,CACP considers  factors  like  overall  demand-supply  conditions,  cost  of  production, domestic and international prices, inter-crop price parity, terms of trade between agricultural and non-agricultural sectors, the likely effect on the rest of the economy, besides ensuring rational  utilization  of  land,  water  and  other  production  resources.  Further,  to  ensure remunerative  prices  to  the  farmers,  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 margin of atleast 50 per cent over all India weighted average cost of production from the agricultural year 2018-19 onwards.

To realize the objectives of MSP Policy, Government extends price support for paddy and wheat through the Food Corporation of India (FCI) and State Agencies. Additionally, Oilseeds, pulses and copra of Fair Average Quality (FAQ) are procured from registered farmers under Price Support Scheme under Umbrella Scheme of PM-AASHA, as per its guidelines at MSP in consultation with the concerned State Government as and when market price  of  these  produce  fall  below  the  MSP.  The  expenditure  incurred  by  the  Central Government on PM-AASHA and MIS schemes since 2019- 20 are as under :-

| Year    |   Expenditure (in Rs. crore) |
|---------|------------------------------|
| 2019-20 |                      2317.78 |
| 2020-21 |                      1357.8  |
| 2021-22 |                      2290.32 |

The quantities purchased / procurement details under PSS since 2019-20 are given at Annexure .

Further, Market Intervention Scheme (MIS) is also implemented for procurement of horticultural / agricultural commodities which are perishable in nature, and for which MSP is not announced.

MSP is announced for Kharif and Rabi Marketing seasons every crop year, on pan India basis for mandated crops of Fair Average Quality (FAQ). Market Prices of agricultural produce are spot prices and are influenced by several factors such as quality of produce, variety, seasonality, arrivals, availability of stocks and enabling agriculture infrastructure and transportation.It would not be appropriate to compare them with MSP for agriculture produce.

Note:-  During Kharif 2018-19 season a quantity of 16.83 lakh MT of Soyabean was supported under PDPS in the state of Madhya Pradesh.

| Procurement details of Pulses,oilseeds 2019-20 to 2022-23 (as on 31.01.2023) Year/Category/Commodity   | copra procured at MSP under PSS Quantity Procured (in MTs)   |
|--------------------------------------------------------------------------------------------------------|--------------------------------------------------------------|
| 2019-20                                                                                                | 43,97,588.68                                                 |
| Oil seed                                                                                               | 15,43,187.86                                                 |
| COPRA                                                                                                  | 313.84                                                       |
| GROUNDNUT                                                                                              | 7,23,085.62                                                  |
| MUSTARD SEED                                                                                           | 8,03,843.64                                                  |
| SOYABEAN                                                                                               | 10,677.68                                                    |
| SUNFLOWER SEED                                                                                         | 5,267.08                                                     |
| Pulses                                                                                                 | 28,54,400.82                                                 |
| GRAM                                                                                                   | 21,58,434.06                                                 |
| MASOOR                                                                                                 | 1,433.68                                                     |
| MOONG                                                                                                  | 1,47,130.39                                                  |
| TOOR                                                                                                   | 5,47,270.38                                                  |
| URAD                                                                                                   | 132.31                                                       |
| 2020-21                                                                                                | 11,12,259.19                                                 |
| Oil seed                                                                                               | 2,95,212.34                                                  |
| COPRA                                                                                                  | 5,088.92                                                     |
| GROUNDNUT                                                                                              | 2,86,233.33                                                  |
| MUSTARD SEED                                                                                           | 0.68                                                         |
| SOYABEAN                                                                                               | 3.69                                                         |
| SUNFLOWER SEED                                                                                         | 3,885.72                                                     |
| Pulses                                                                                                 | 8,17,046.85                                                  |
| GRAM                                                                                                   | 6,37,545.78                                                  |
| MASOOR                                                                                                 | 18.35                                                        |
| MOONG                                                                                                  | 1,67,391.20                                                  |
| TOOR                                                                                                   | 11,004.46                                                    |
| URAD                                                                                                   | 1,087.06                                                     |
| 2021-22                                                                                                | 31,82,591.64                                                 |
| Oil seed                                                                                               | 1,51,634.73                                                  |
| COPRA                                                                                                  | 32.95                                                        |
| GROUNDNUT                                                                                              | 1,49,696.34                                                  |
| SUNFLOWER SEED                                                                                         | 1,905.44                                                     |
| Pulses                                                                                                 | 30,30,956.91                                                 |
| GRAM                                                                                                   | 26,29,460.83                                                 |
| MOONG                                                                                                  | 3,63,274.09                                                  |
| TOOR                                                                                                   | 36,184.14                                                    |
| URAD                                                                                                   | 2,037.85                                                     |
| 2022-23                                                                                                | 1,68,046.19                                                  |
| Oil seed                                                                                               | 47,926.50                                                    |
| COPRA                                                                                                  | 40,849.36                                                    |
| GROUNDNUT                                                                                              | 7,077.14                                                     |
| Pulses                                                                                                 | 1,20,119.69                                                  |
| MOONG                                                                                                  | 1,20,109.94                                                  |
| URAD                                                                                                   | 9.75                                                         |