Lok Sabha Question No. 3303 (UNSTARRED), answered on 2023-03-21
Subject: Production Cost of Oil  Seeds
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: Ramdas Chandrabhanji Tadas

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

## LOK SABHA UNSTARRED QUESTION. 3303

TO BE ANSWERED ON 21 ST  MARCH, 2023

## PRODUCTION COST OF OIL SEEDS

## 3303 .    SHRI RAMDAS C. TADAS:

Will the Minister of AGRICULTURE AND FARMERS WELFARE कृ षि एवं ककसान कल्याण मंत्री be pleased to state:

- (a) whether the production cost of oil seeds is more than the other crops;
- (b) if so, the details thereof and the reaction of the Government thereto; and
- (c) the  steps  taken  by  the  Government  to  ensure  better  remunerative  price  for  the  said crop?

## ANSWER

## MINISTER OF AGRICULTURE AND FARMERS WELFARE

कृ षि एवं ककसान कल्याण मंत्री (SHRI NARENDERA SINGH TOMAR)

(a) to  (c)  The  cost  of  production  estimates  generated  include  all  paid-out  cost,  i.e.,  cost incurred  in  cash  and  kind,  like  value  of  hired  human  labour,  hired  and  owned  bullock  and machine labour, value of seeds, insecticides, pesticides, manure, fertilizer, irrigation charges, land  revenue,  cesses  &  other  taxes,  interest  on  working  capital,  miscellaneous  expenses, rent paid for leased land; and imputed value of family labour. Based on the crop-wise and state-wise  cost  estimates  generated  under  the  CS  Scheme,  CACP  projects  crop-wise  all India weighted  average  cost  of  production  for  the  ensuing  season  to  arrive  at the recommendations of Minimum Support Price (MSP) of major agriculture commodities.

The  estimated  all  India  weighted  average  cost  of  production  (paid  out  costs  and imputed value of family labour) and MSP of mandated crops including Oilseeds crops during the last five years is attached in Annexure I .

Government  fixes  Minimum  Support  Prices  (MSPs)  for  twenty-two  (22)  mandated crops  including  five  kharif  oilseeds  viz.  Groundnut,  Soyabean,  Sunflower,  Sesamum  and Nigerseed  and  2  Rabi  Oilseeds  viz.  Rapeseed  &  Mustard  and  Safflower  based  on  the recommendations of the Commission  for Agricultural Costs & Prices (CACP)  after considering the views of concerned State Governments and Central Ministries/Departments.

While recommending MSPs, CACP considers important factors like cost of production, overall demand-supply situation of various crops in domestic and global markets, domestic and international prices, inter-crop price parity, terms of trade between agricultural and nonagricultural sector, likely effect of price policy on rest of the economy etc.

The 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 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.  Government also extends price support for foodgrains through FCI and other agencies subject to FAQ (Fair Average Quality) specifications. Government also intervenes in  the  market through PM-AASHA for Oilseeds and Pulses, where market price falls below MSP, subject to extant guidelines.

The  Government  has  been  implementing  a  Centrally  Sponsored  Scheme,  National Food Security Mission- Oilseeds & Oil palm (NFSM-OS&OP) from 2018-19 to augment the availability  of  vegetable  oils  and  to  reduce  the  import  of  edible  oils  by  increasing  the production  and  productivity  of  oilseeds  and  area  expansion  of  Oil  Palm  &  Tree  Borne Oilseeds in the country. The NFSM-Oilseeds is being implemented through the Department of Agriculture/Horticulture in 28 States/UTs in the country. Assistance is being provided to the farmers  for  cultivation  of  Oilseeds  on  purchase  of  breeder  seed,  production  of  foundation seed production and distribution of certified seeds, & distribution of seed minikits. Financial Assistance  on  Transfer  of  Technologies  FLD,  CFLD  (block  demonstrations,  and  officers  & farmers  trainings)  and  Production  Inputs  (supply  of  plant  protection  equipments,  soil ameliorates,  micro-nutrients,  weedicides,  insecticides,  bio-fertilizer/bio-agents,  etc.),  and water carrying devices (distribution of sprinkle sets and water carrying pipes) are also being provided to the farmers.

Now,  the  Government  has  launched  a  separate  Mission  for  Oil  Palm,  which  is  the National  Mission  on  Edible  Oils  (Oil  Palm)  (NMEO-OP)  in  2021-22  with  the  objective  to enhance  edible  oil  production  through  area  expansion  and  increasing  CPO  production  of oilpalm and to reduce import burden on edible oils.

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( रु/ qtl.)

| Projected Cost of Production(CoP) A +FL&MSP   | Projected Cost of Production(CoP) A +FL&MSP   | Projected Cost of Production(CoP) A +FL&MSP   | Projected Cost of Production(CoP) A +FL&MSP   | Projected Cost of Production(CoP) A +FL&MSP   | Projected Cost of Production(CoP) A +FL&MSP   | Projected Cost of Production(CoP) A +FL&MSP   | Projected Cost of Production(CoP) A +FL&MSP   | Projected Cost of Production(CoP) A +FL&MSP   | Projected Cost of Production(CoP) A +FL&MSP   | Projected Cost of Production(CoP) A +FL&MSP   |
|-----------------------------------------------|-----------------------------------------------|-----------------------------------------------|-----------------------------------------------|-----------------------------------------------|-----------------------------------------------|-----------------------------------------------|-----------------------------------------------|-----------------------------------------------|-----------------------------------------------|-----------------------------------------------|
| Crop                                          | 2018-19                                       | 2018-19                                       | 2019-20                                       | 2019-20                                       | 2020-21                                       | 2020-21                                       | 2021-22                                       | 2021-22                                       | 2022-23                                       | 2022-23                                       |
| Crop                                          | A 2 +FL                                       | MSP                                           | A 2 +FL                                       | MSP                                           | A 2 +FL                                       | MSP                                           | A 2 +FL                                       | MSP                                           | A 2 +FL                                       | MSP                                           |
| Kharif Crops                                  |                                               |                                               |                                               |                                               |                                               |                                               |                                               |                                               |                                               |                                               |
| Paddy                                         | 1166                                          | 1750                                          | 1208                                          | 1815                                          | 1245                                          | 1868                                          | 1293                                          | 1940                                          | 1360                                          | 2040                                          |
| Jowar                                         | 1619                                          | 2430                                          | 1698                                          | 2550                                          | 1746                                          | 2620                                          | 1825                                          | 2738                                          | 1977                                          | 2970                                          |
| Bajra                                         | 990                                           | 1950                                          | 1083                                          | 2000                                          | 1175                                          | 2150                                          | 1213                                          | 2250                                          | 1268                                          | 2350                                          |
| Maize                                         | 1130                                          | 1700                                          | 1171                                          | 1760                                          | 1213                                          | 1850                                          | 1246                                          | 1870                                          | 1308                                          | 1962                                          |
| Ragi                                          | 1931                                          | 2897                                          | 2100                                          | 3150                                          | 2194                                          | 3295                                          | 2251                                          | 3377                                          | 2385                                          | 3578                                          |
| Tur (Arhar)                                   | 3431                                          | 5675                                          | 3636                                          | 5800                                          | 3796                                          | 6000                                          | 3886                                          | 6300                                          | 4131                                          | 6600                                          |
| Moong                                         | 4650                                          | 6975                                          | 4699                                          | 7050                                          | 4797                                          | 7196                                          | 4850                                          | 7275                                          | 5167                                          | 7755                                          |
| Urad                                          | 3437                                          | 5600                                          | 3477                                          | 5700                                          | 3660                                          | 6000                                          | 3816                                          | 6300                                          | 4155                                          | 6600                                          |
| Groundnut                                     | 3259                                          | 4890                                          | 3394                                          | 5090                                          | 3515                                          | 5275                                          | 3699                                          | 5550                                          | 3873                                          | 5850                                          |
| Soybean                                       | 2266                                          | 3399                                          | 2473                                          | 3710                                          | 2587                                          | 3880                                          | 2633                                          | 3950                                          | 2805                                          | 4300                                          |
| Sunflower                                     | 3592                                          | 5388                                          | 3767                                          | 5650                                          | 3921                                          | 5885                                          | 4010                                          | 6015                                          | 4113                                          | 6400                                          |
| Sesamum                                       | 4166                                          | 6249                                          | 4322                                          | 6485                                          | 4570                                          | 6855                                          | 4871                                          | 7307                                          | 5220                                          | 7830                                          |
| Nigerseed                                     | 3917                                          | 5877                                          | 3960                                          | 5940                                          | 4462                                          | 6695                                          | 4620                                          | 6930                                          | 4858                                          | 7287                                          |
| Cotton                                        | 3432                                          | 5150                                          | 3501                                          | 5255                                          | 3676                                          | 5515                                          | 3817                                          | 5726                                          | 4053                                          | 6080                                          |
| Rabi Crops                                    |                                               |                                               |                                               |                                               |                                               |                                               |                                               |                                               |                                               |                                               |
| Wheat                                         | 865                                           | 1840                                          | 923                                           | 1925                                          | 960                                           | 1975                                          | 1008                                          | 2015                                          | 1065                                          | 2125                                          |
| Barley                                        | 859                                           | 1440                                          | 919                                           | 1525                                          | 971                                           | 1600                                          | 1019                                          | 1635                                          | 1082                                          | 1735                                          |
| Gram                                          | 2637                                          | 4620                                          | 2801                                          | 4875                                          | 2866                                          | 5100                                          | 3004                                          | 5230                                          | 3206                                          | 5335                                          |
| Lentil(Masur)                                 | 2531                                          | 4475                                          | 2727                                          | 4800                                          | 2864                                          | 5100                                          | 3079                                          | 5500                                          | 3239                                          | 6000                                          |
| R&M                                           | 2211                                          | 4200                                          | 2323                                          | 4425                                          | 2415                                          | 4650                                          | 2523                                          | 5050                                          | 2670                                          | 5450                                          |
| Safflower                                     | 3294                                          | 4945                                          | 3470                                          | 5215                                          | 3551                                          | 5327                                          | 3627                                          | 5441                                          | 3765                                          | 5650                                          |
| Other Crops                                   |                                               |                                               |                                               |                                               |                                               |                                               |                                               |                                               |                                               |                                               |
| Sugarcane                                     | 155                                           | 275                                           | 156                                           | 275                                           | 159                                           | 285                                           | 155                                           | 290                                           | 162                                           | 305                                           |
| Copra                                         | 6347                                          | 9521                                          | 6639                                          | 9960                                          | 6805                                          | 10335                                         | 6974                                          | 10590                                         | 7153                                          | 10860                                         |
| Jute                                          | 2267                                          | 3700                                          | 2535                                          | 3950                                          | 2709                                          | 4225                                          | 2832                                          | 4500                                          | 2959                                          | 4750                                          |

Source: Commission for Agricultural Costs and Prices (CACP)

A2+FL refers to all paid out cost + Imputed Value of Family Labour

MSP refers to Minimum Support Price