Lok Sabha Question No. 418 (UNSTARRED), answered on 2022-07-19
Subject: Increase in MSP
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: Su Thirunavukkarasar, Komati Reddy Venkat Reddy, Mala Rajya Laxmi Shah, Manne Srinivas Reddy, Pushpendra Singh Chandel, Vijayakumar (alias) Vijay Vasanth, Janardan Singh Sigriwal, Ramesh Bidhuri

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

## LOK SABHA

## UNSTARRED QUESTION NO.  418

TO BE ANSWERED ON THE 19 TH  JULY, 2022

## INCREASE IN MSP

418.       SHRI THIRUNAVUKKARASAR SU: SHRI KOMATI REDDY VENKAT REDDY: SHRIMATI MALA RAJYA LAXMI SHAH: SHRI MANNE SRINIVAS REDDY: SHRI KUNWAR PUSHPENDRA SINGH CHANDEL: SHRI VIJAYAKUMAR (ALIAS) VIJAY VASANTH: SHRI JANARDAN SINGH SIGRIWAL: SHRI RAMESH BIDHURI:

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

- (a)    whether  the  Government  has  taken  any  initiative  to  provide  remunerative  prices  to farmers by considering the policy of dynamic pricing of Kharif crops, etc  proportional to the market prices, if so, the details thereof;
- (b)   whether the Government raised the Minimum Support Price (MSP) of kharif crops  for 2022-23 by around 5-9 per cent and the biggest hikes were reserved for pulses   and oilseeds and also for jowar to encourage its cultivation;
- (c)        if  so,  the  details  thereof  comparatively  since  2014  till  date,  State-wise,  crop-wise and  MSP-wise  including  Uttarakahand  and  Bundelkhand  and  the  actual  demands    of  the farmers met/ignored by the Government along with the reasons therefor;
- (d)        whether  any  study  has  been  conducted  to  assess  the  impact  of  MSP  and  its  likely benefit to farmers;
- (e)     if so, the details thereof and if not, the reasons therefor; and
- (f)          the  other  measures  being  taken  to  increase  farmers  income  in  proportion  to  cost of cultivation?

## ANSWER

## THE MINISTER OF AGRICULTURE AND FARMERS WELFARE

कृ िष एवं कसान कयाण मंी ( SHRI NARENDRA SINGH TOMAR)

(a)  &  (b):    Government  announces  Minimum  Support  Price  (MSP)  to  ensure  remunerative prices to the growers for their produce and encourage higher investment and production. The 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 return  of  atleast  50  per  cent  over  all  India  weighted  average  cost  of  production  from  the agricultural year 2018-19 onwards. In line with the same principle, Government has recently announced the increase in MSP for all mandated kharif crops of year 2022-23 on 8 th June, 2022 .

Government has made concerted efforts for increasing production of oilseeds, pulses and  nutri-cereals  so  as  to  encourage  farmers  to  increase  productivity  by  adopting  best technologies and farm practices and to correct demand - supply imbalance.

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. CACP projects the cost of production for the current year on the basis of Composite Input Price Index (CIPI) which measures the change in input price over previous year. The CIPIs are based on latest prices of major inputs like human labour, bullock labour, machine labour, fertilisers  and  manures,  seeds, pesticides and irrigation  as per data available from different ministries/ departments.

( c): MSP is determined for the country as a whole and not region or state-specific. However, region-specific parameters are also kept in view by CACP while recommending MSP. CACP holds  consultations  with  stakeholders  and  seeks  suggestions  for  both  price  and  non-price recommendations before finalizing its recommendations on MSP. The details of MSP form 2014-15 are given at Annex 1.

(d) & (e):   The NITI Aayog (erstwhile Planning Commission) has conducted a study entitled 'Efficacy  of  minimum  support  prices  on  farmers',  2016.  The  study  covered  14  States,  36 Districts,  72  Blocks,  144  Villages  and  1440  Households.  The  study  is  based  on  both  the primary and secondary data. The study has found, among other things, that MSP declared by the Government has encouraged 78 % of the farmers covered under the study for adopting improved  methods  of  farming  such  as  high  yielding  varieties  of  seeds,  organic  manure, chemical fertilizer, pesticides and improved methods of harvesting etc.

(f):  MSP is one of the measures for remunerative prices to farmers.  Moreover, Government has  taken  a  'multi  pronged  approach'  to  increase  the  income  of  farmers  and  has  been implementing/reorienting  various  schemes  for  the  same  which  include  Soil  Health  Card (SHC),  Pradhan Mantri Kisan Samman Nidhi (PM-KISAN), Pradhan Mantri Krishi Sinchayee Yojana  (PMKSY), e-NAM,  Pradhan   Mantri  Fasal  Bima  Yojana  (PMFBY),  Pradhan  Mantri Annadata Aay Sanrakshan Abhiyan' (PM-AASHA), Agriculture Infrastructure Fund, promotion of  10,000  FPOs,  a  special  dedicated  scheme  on  Agriculture  Mechanization  (SMAM)  etc. among others.

## Annex referred to in reply to part (c) of Lok Sabha Unstarred Question No. 418 due for reply on 19.07.2022 Minimum Support Price (MSP)

(₹ per quintal)

| Commodity                         | Variety       | 2014- 15   | 2015- 16   | 2016- 17   | 2017- 18   | 2018- 19   | 2019- 20   | 2020- 21   | 2021- 22   | 2022- 23   |
|-----------------------------------|---------------|------------|------------|------------|------------|------------|------------|------------|------------|------------|
| KHARIF CROPS                      |               |            |            |            |            |            |            |            |            |            |
| PADDY                             | Common        | 1360       | 1410       | 1470       | 1550       | 1750       | 1815       | 1868       | 1940       | 2040       |
|                                   | Grade 'A'     | 1400       | 1450       | 1510       | 1590       | 1770       | 1835       | 1888       | 1960       | 2060       |
| JOWAR                             | Hybrid        | 1530       | 1570       | 1625       | 1700       | 2430       | 2550       | 2620       | 2738       | 2970       |
|                                   | Maldandi      | 1550       | 1590       | 1650       | 1725       | 2450       | 2570       | 2640       | 2758       | 2990       |
| BAJRA                             |               | 1250       | 1275       | 1330       | 1425       | 1950       | 2000       | 2150       | 2250       | 2350       |
| RAGI                              |               | 1550       | 1650       | 1725       | 1900       | 2897       | 3150       | 3295       | 3377       | 3578       |
| MAIZE                             |               | 1310       | 1325       | 1365       | 1425       | 1700       | 1760       | 1850       | 1870       | 1962       |
| ARHAR(Tur)                        |               | 4350       | 4625       | 5050       | 5450       | 5675       | 5800       | 6000       | 6300       | 6600       |
| MOONG                             |               | 4600       | 4850       | 5225       | 5575       | 6975       | 7050       | 7196       | 7275       | 7755       |
| URAD                              |               | 4350       | 4625       | 5000       | 5400       | 5600       | 5700       | 6000       | 6300       | 6600       |
| COTTON                            | Medium Staple | 3750       | 3800       | 3860       | 4020       | 5150       | 5255       | 5515       | 5726       | 6080       |
|                                   | Long Staple   | 4050       | 4100       | 4160       | 4320       | 5450       | 5550       | 5825       | 6025       | 6380       |
| GROUNDNUT                         |               | 4000       | 4030       | 4220       | 4450       | 4890       | 5090       | 5275       | 5550       | 5850       |
| SUNFLOWER SEED                    |               | 3750       | 3800       | 3950       | 4100       | 5388       | 5650       | 5885       | 6015       | 6400       |
| SOYABEAN                          | Yellow        | 2560       | 2600       | 2775       | 3050       | 3399       | 3710       | 3880       | 3950       | 4300       |
| SESAMUM                           |               | 4600       | 4700       | 5000       | 5300       | 6249       | 6485       | 6855       | 7307       | 7830       |
| NIGERSEED                         |               | 3600       | 3650       | 3825       | 4050       | 5877       | 5940       | 6695       | 6930       | 7287       |
| RABI CROPS                        |               |            |            |            |            |            |            |            |            |            |
| WHEAT                             |               | 1450       | 1525       | 1625       | 1735       | 1840       | 1925       | 1975       | 2015       |            |
| BARLEY                            |               | 1150       | 1225       | 1325       | 1410       | 1440       | 1525       | 1600       | 1635       |            |
| GRAM                              |               | 3175       | 3500       | 4000       | 4400       | 4620       | 4875       | 5100       | 5230       |            |
| MASUR (LENTIL)                    |               | 3075       | 3400       | 3950       | 4250       | 4475       | 4800       | 5100       | 5500       |            |
| RAPESEED/MUSTARD                  |               | 3100       | 3350       | 3700       | 4000       | 4200       | 4425       | 4650       | 5050       |            |
| SAFFLOWER                         |               | 3050       | 3300       | 3700       | 4100       | 4945       | 5215       | 5327       | 5441       |            |
| TORIA                             |               | 3020       | 3290       | 3560       | 3900       | 4190       | 4425       | 4650       | 5050       |            |
| OTHER CROPS                       |               |            |            |            |            |            |            |            |            |            |
| COPRA (Calendar Year)             | Milling       | 5250       | 5550       | 5950       | 6500       | 7511       | 9521       | 9960       | 10335      | 10590      |
| COPRA (Calendar Year)             | Ball          | 5500       | 5830       | 6240       | 6785       | 7750       | 9920       | 10300      | 10600      | 11000      |
| DE-HUSKED COCONUT (Calendar Year) |               | 1425       | 1500       | 1600       | 1760       | 2030       | 2571       | 2700       | 2800       | 2860       |
| JUTE                              |               | 2400       | 2700       | 3200       | 3500       | 3700       | 3950       | 4225       | 4500       | 4750       |

Note: MSP for Rabi crops for 2022 is yet to be fixed.

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