Lok Sabha Question No. 1098 (UNSTARRED), answered on 2022-02-08
Subject: Minimum Support Price
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: N.K. Premachandran

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

## LOK SABHA UNSTARRED QUESTION No.1098

TO BE ANSWERED ON 08 TH  FEBRUARY, 2022

## MINIMUM SUPPORT PRICE

1098. SHRI N.K. PREMACHANDRAN:

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

- (a) whether the Government proposes legislation for Minimum Support Price (MSP), if so, the details thereof;
- (b) whether the Government has conducted any study regarding the difficulties of farmers due to the lack reasonable of price agricultural produce, if so, the details thereof;
- (c) whether the Government proposes to give MSP for more agricultural produce, if so, the details thereof;
- (d) the criteria fixed by the Government for fixing MSP;
- (e) whether the Government proposes to conduct any study regarding the actual expense for the

agricultural produce and its market value, if so, the details thereof;

## ANSWER

MINISTER OF AGRICULTURE AND FARMERS WELFARE

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

- (a) &  (b)  :  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). In addition, MSP for toria and de-husked coconut is also fixed on the basis of MSPs of rapeseed  &  mustard  and  copra  respectively.  Government  also  extends  remunerative  price  to farmers  through  its  various  interventions  schemes.  Besides,  the  overall  market  also  responds  to declaration of MSP and Government's procurement operations which results in private procurement on or above the MSP for various notified crops.

Government  extends  price  support  for  paddy  and  wheat  through  the  Food Corporation of India (FCI) and State Agencies. 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. Cotton and Jute are also procured by Government at MSP through Cotton Corporation of India

(CCI) and Jute Corporation of India (JCI).

For  making  effective  procurement  by  government  agencies  at  MSP  and providing maximum benefits of MSP to the farmers, procurement centers 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  centers  in  addition  to  the  existing mandis and depots/godowns are also established at key points for the convenience of farmers.

(c)  to  (g)  :  Government  fixes  MSP  for  those  crops  which  are  mostly  items  of  mass consumption  of  all  India  nature  with  fairly  long  shelf  life  and  /or  necessary  for food/nutrition security. MSPs are fixed based on the recommendations of Commission for  Agricultural  Costs  &  Prices  (CACP),  the  views  of  concerned State  Governments and  Central  Ministries/Departments.  While  recommending  price  policy,  the  CACP considers, inter-alia, a number of important factors which include cost of production, overall demand-supply conditions, domestic and international prices, inter-crop price, terms of trade between agricultural and non-agricultural sectors, the likely effect on the rest  of  the  economy,  besides  ensuring  rational  utilization  of  land,  water  and  other production  resources  and  a  minimum  of  50  percent  as  the  margin  over  cost  of production in case of MSPs. Government fixes MSP for country as a whole and not state specific.

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