Lok Sabha Question No. 1082 (UNSTARRED), answered on 2023-02-08
Subject: MSP of Cash Crops
Ministry: COMMERCE AND INDUSTRY
Asked by: Dean Kuriakose

## GOVERNMENT OF INDIA

## MINISTRY OF COMMERCE & INDUSTRY (DEPARTMENT OF COMMERCE)

## LOK SABHA UNSTARRED QUESTION NO.  1082 TO BE ANSWERED ON 08 th  FEBRUARY, 2023

## MSP OF CASH CROPS

## 1082. ADV. DEAN KURIAKOSE:

Will the Minister of COMMERCE & INDUSTRY ( वाणिज्य एवं उद्योग मंत्री ) be pleased to state:

- (a) whether  the  Government  has  the  criteria  based  on  which  certain  cash  crops  are selected, for which Minimum Support Prices (MSPs) are declared;
- (b) if so, the details thereof;
- (c) whether the Government has details on why MSP is not declared for cash crops like rubber, cardamom, tea and coffee while MSP is declared for copra and Sugarcane;
- (d) if so, the details thereof;
- (e) whether the Government will declare MSPs for rubber, cardamom, tea and coffee in the coming financial year; and
- (f) if so, the details thereof and if not, the reasons therefor?

## ANSWER

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## THE MINISTER OF STATE IN THE MINISTRY OF COMMERCE AND INDUSTRY (SMT. ANUPRIYA PATEL)

(a) to (b): The  Government  of  India  fixes  Minimum  Support  Price  (MSP)  for  22 mandated Crops (Kharif and Rabi) and Fair & Remunerative Price (FRP') for sugarcane on the  basis  of  the  recommendations  of  the  Commission  for  Agricultural  Costs  and  Prices (CACP), views of State Governments and Central Ministries/Departments concerned and other relevant factors. The mandated crops include 14 Kharif crops viz. paddy, jowar, bajra, maize, ragi, arhar, moong, urad, groundnut-in-shell, soyabean, sunflower, sesamum, nigerseed, cotton and 6 (six) Rabi crops viz. wheat, barley, gram, masur (lentil), rapeseed/mustard, safflower; and MSP for two commercial crops viz. jute and copra are also fixed. In addition, MSP for toria and de-husked coconut are also fixed on the basis of MSPs of rapeseed/mustard and copra respectively.

The  CACP  also  considers  cost  estimates  generated  under  the  Comprehensive  Scheme  for studying the Costs of Cultivation of Principal Crops in India for 25 major crops while making

recommendation for MSP/FRP. The Cost of production (CoP) is one of the important factors in the determination of MSPs. The CACP also considers factors such as domestic and global demand  and  supply  situation  of  main  product  and  by-products,  trends  in  national  and international  prices,  intercrop  price  parity,  terms  of  trade  between  agriculture  and  nonagriculture sectors, likely impact of MSP on consumers, producers and overall economy along with rational utilization of land, water and other production resources, and a minimum of 50 percent as the margin over cost of production, while recommending MSPs of mandated crops.

(c) to (f) : The crops considered under MSP are generally major agricultural commodities which are widely grown and have large area under cultivation; are items of mass consumption with  fairly  long  shelf  life;  and  are  necessary  for  food  security.  Since,  crops  like  rubber, cardamom, tea and coffee etc. do not meet most of the criteria, these crops are not covered under MSP scheme.

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