Lok Sabha Question No. 402 (UNSTARRED), answered on 2021-07-20
Subject: Hike in MSP
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: Margani Bharat, S. Gnanathiraviam, Vijay Kumar, Su Thirunavukkarasar

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

## LOK SABHA UNSTARRED QUESTION NO. 402

TO BE ANSWERED ON THE 20 th  JULY, 2021

## HIKE IN MSP

402.        SHRI MARGANI BHARAT:

SHRI GNANATHIRAVIAM S.:

SHRI VIJAYAKUMAR (ALIAS) VIJAY VASANTH:

SHRI SU. THIRUNAVUKKARASAR:

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

- (a)  whether the Union Government has recently announced hike in Minimum Support Price (MSP) of paddy, pulses, oilseeds, cereals and other Kharif crops;
- (b)  if so, details of MSP recommended by Commission for Agricultural Costs and Prices and details of MSP approved by the Ministry for Kharif season, crops-wise;
- (c)  the details of increase in MSP of various agricultural produce during the last three years, year/crop-wise;
- (d)  the criteria/formula adopted in hiking the MSP of these products;
- (e)  the reaction of farmers/farmers' federations thereto; and
- (f)   the extent to which the hike in MSP will help farmers to double their income by next years target?

## ANSWER

THE MINISTER OF AGRICULTURE AND FARMERS WELFARE

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

- (a)  to  (c):      Government  has  recently  announced    Minimum  Support  Prices  (MSP)  for  14 mandated  kharif  crops  including  paddy,  pulses,  oilseeds  and  cereals  on  the  basis  of  the recommendations  of  the  Commission  for  Agricultural  Costs  and  Prices  (CACP),  after considering the views of State Governments and Central Ministries/Departments concerned and other relevant factors.

The  Government  in  its  Union  Budget  for  2018-19  had  announced  the  predetermined principle to keep MSP at a level of one and half times of the cost of production. Accordingly, Government has increased the MSPs 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 ( Annex ).

(d) to (f):   Cost of production is one of the important factors in the determination of MSPs. While  recommending  its  price  policy,  the  CACP  considers  all  costs  in  a  comprehensive manner. The  costs  include  all  paid  out  costs  such  as  those  incurred  on  account  of  hired human labour, bullock labour/machine labour, rent paid for in land, expenses incurred in cash and  kind  on  the  use  of  material  inputs  like  seeds,  fertilizers,  manures,  irrigation  charges, depreciation on implements and farm buildings, interest on working capital, diesel/electricity for operation of pump sets etc., miscellaneous expenses and imputed value of family labour.

In  addition  to  cost  of  production  CACP  also  considers  various  other  factors  while recommending  MSP  which  include  overall  demand-supply  situations  of  various  crops  in domestic and world markets, domestic and international prices, inter-crop price parity, terms of trade between agriculture and non-agriculture sector, likely effect of price policy on rest of economy and a minimum of 50 percent as the margin over cost of production.

CACP also consult various stakeholders including Farmer's association while recommending MSP.

Government  has  taken  a  'multi  pronged  approach'  to  double  the  farmer's  income which  include  reducing  input  costs;  ensuring  fair  price  for  the  produce;  reducing  wastage; and  creating  alternate  sources  of  income  among  others.  The  Government  has  been implementing/reorienting various schemes to address the above mentioned key areas which include Soil Health Card (SHC), Pradhan Mantri Krishi Sinchayee Yojana (PMKSY) , e NAM, Pradhan  Mantri  Fasal  Bima  Yojana  (PMFBY),  Pradhan  Mantri  Annadata  Aay  Sanrakshan Abhiyan'(PM-AASHA) among others.

## Annex

## Annex referred to in reply to part (a) to (c) of Lok Sabha Unstarred Question No. 402 due for reply on 20.07.2021

## Minimum Support Price (According to crop year)

(Rs. per quintal)

| Sl. No.   | Commodity                         | Variety       | 2019-20              | 2019-20             | 2020-21             | 2020-21              | 2021-22              | 2021-22              |
|-----------|-----------------------------------|---------------|----------------------|---------------------|---------------------|----------------------|----------------------|----------------------|
|           |                                   |               | Recommen ded by CACP | Fixed by Government | Recommende d byCACP | Fixed by Governme nt | Recommen ded by CACP | Fixed by Governme nt |
|           | KHARIF CROPS                      |               |                      |                     |                     |                      |                      |                      |
| 1         | PADDY                             | Common        | 1815                 | 1815                | 1868                | 1868                 | 1940                 | 1940                 |
|           |                                   | Grade 'A'     | 1835                 | 1835                | 1888                | 1888                 | 1960                 | 1960                 |
| 2         | JOWAR                             | Hybrid        | 2550                 | 2550                | 2620                | 2620                 | 2738                 | 2738                 |
|           |                                   | Maldandi      | 2570                 | 2570                | 2640                | 2640                 | 2758                 | 2758                 |
| 3         | BAJRA                             |               | 2000                 | 2000                | 2150                | 2150                 | 2250                 | 2250                 |
| 4         | RAGI                              |               | 3150                 | 3150                | 3295                | 3295                 | 3377                 | 3377                 |
| 5         | MAIZE                             |               | 1760                 | 1760                | 1850                | 1850                 | 1870                 | 1870                 |
| 6         | TUR (ARHAR)                       |               | 5800                 | 5800                | 6000                | 6000                 | 6300                 | 6300                 |
| 7         | MOONG                             |               | 7050                 | 7050                | 7196                | 7196                 | 7275                 | 7275                 |
| 8         | URAD                              |               | 5700                 | 5700                | 6000                | 6000                 | 6300                 | 6300                 |
| 9         | COTTON                            | Medium Staple | 5255                 | 5255                | 5515                | 5515                 | 5726                 | 5726                 |
|           |                                   | Long Staple   | 5550                 | 5550                | 5825                | 5825                 | 6025                 | 6025                 |
| 10        | GROUNDNUT                         |               | 5090                 | 5090                | 5275                | 5275                 | 5550                 | 5550                 |
| 11        | SUNFLOWER SEED                    |               | 5650                 | 5650                | 5885                | 5885                 | 6015                 | 6015                 |
| 12        | SOYABEAN                          | Yellow        | 3710                 | 3710                | 3880                | 3880                 | 3950                 | 3950                 |
| 13        | SESAMUM                           |               | 6485                 | 6485                | 6855                | 6855                 | 7307                 | 7307                 |
| 14        | NIGERSEED                         |               | 5940                 | 5940                | 6695                | 6695                 | 6930                 | 6930                 |
|           | RABI CROPS                        |               |                      |                     |                     |                      |                      |                      |
| 15        | WHEAT                             |               | 1925                 | 1925                | 1975                | 1975                 |                      |                      |
| 16        | BARLEY                            |               | 1525                 | 1525                | 1600                | 1600                 |                      |                      |
| 17        | GRAM                              |               | 4875                 | 4875                | 5100                | 5100                 |                      |                      |
| 18        | MASUR (LENTIL)                    |               | 4800                 | 4800                | 5100                | 5100                 |                      |                      |
| 19        | RAPESEED & MUSTARD                |               | 4425                 | 4425                | 4650                | 4650                 |                      |                      |
| 20        | SAFFLOWER                         |               | 5215                 | 5215                | 5327                | 5327                 |                      |                      |
|           | OTHER CROPS                       |               |                      |                     |                     |                      |                      |                      |
| 22        | COPRA                             | Milling       | 9520                 | 9521                | 9960                | 9960                 | 10335                | 10335                |
|           | (Calendar Year)                   | Ball          | 9920                 | 9920                | 10300               | 10300                | 10600                | 10600                |
| 23        | DE-HUSKED COCONUT (Calendar Year) |               | 2571                 | 2571                | 2700                | 2700                 | 2800                 | 2800                 |
| 24        | JUTE                              |               | 3950                 | 3950                | 4225                | 4225                 | 4500                 | 4500                 |

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