Lok Sabha Question No. 308 (UNSTARRED), answered on 2021-11-30
Subject: Legal Backing for MSP
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: K. Muraleedharan

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

## LOK SABHA UNSTARRED QUESTION NO. 308

TO BE ANSWERED ON THE 30 TH  NOVEMBER, 2021

## LEGAL BACKING FOR MSP

308. SHRI  K. MURALEEDHARAN:

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

- (a) whether the Government has any plan to introduce legal backing to the Minimum Support Price (MSP) to agricultural products;
- (b) if so the details thereof;and
- (c) the steps taken by the Government on MSP?

## ANSWER

MINISTER OF AGRICULTURE AND FARMERS WELFARE

कृ ष एवं कसान कल् याण मंी (SHRI NARENDRA SINGH TOMAR)

- (a) to (c):  Government of India announces Minimum Support Prices (MSP) for 22 major agricultural commodities of Fair Average Quality (FAQ) each year in both the Crop seasons after taking into account the recommendations of the Commission for Agricultural

Costs and Prices (CACP). Government  extends  price  support  for  paddy  and  wheat  through  the  Food Corporation of India (FCI) and State Agencies. Under this policy, whatever food grains are offered  by  farmers  within  the  stipulated  period  &  conforming  to  the  specifications prescribed by Government are purchased at Minimum Support Price (MSP) by the State Government agencies including FCI for Central Pool. It aims to service the National Food Security  Act  (NFSA)  and  other  welfare  schemes  of the  Government  so  that subsidized food  grains  are  supplied  to  the  poor  and  needy,  and  to  build  up  buffer  stocks  of  food grains to ensure food grain security.

Further, different types of nutri-cereals and maize are procured by State Governments  itself  in  consultation  with  FCI  to  the  extent  that  the  concerned  State Government  may  utilise  the  same  for  distribution  under  Targeted  Public  Distribution System (TPDS) as well as Other Welfare Schemes (OWS).

Oilseeds,  pulses  and  copra  of  Fair  Average  Quality  (FAQ)  are  procured  from registered  farmers  under  Price  Support  Scheme  under  Umbrella  Scheme  of  Pradhan Mantri Annadata Aay SanraksHan Abhiyan (PM-AASHA), as per its prescribed guidelines at MSP in consultation with the concerned State Government. Under PM-AASHA, States / UTs  are  offered  to  choose  either  Price  Support  Scheme  (PSS)  or  Price  Deficiency Payment  Scheme  (PDPS)  in  a  given  procurement  season  with  respect  to  particular oilseeds  crop  for  the  entire  State.  Further,  States  have  the  option  to  roll  out  Private Procurement and Stockist Scheme (PPSS) on pilot basis in district / selected APMC(s) of district involving the participation of private stockist for oilseeds. Cotton and Jute are also procured  by  Government  at  MSP  through  Cotton  Corporation  of  India  (CCI)  and  Jute Corporation of India (JCI).

Procurement centres are opened by respective State Government Agencies and Central  Nodal  Agencies  like  NAFED,  FCI  etc  after  taking  into  account  the  production, marketable surplus, convenience of farmers and availability of other logistics/ infrastructure  such  as  storage  and  transportation  etc.  large  number  of  the  purchase centres in addition to the existing Mandis and depots/godowns are also established at key points for the convenience of farmers.

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