Lok Sabha Question No. 297 (UNSTARRED), answered on 2021-07-20
Subject: Increase in MSP for Kharif crops
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: Ravneet Singh

## GOVERNMENT OF INDIA MINISTRY OF AGRICULTURE & FARMERS WELFARE

## DEPARTMENT OF AGRICULTURE, COOPERATION & FARMERS WELFARE

## LOK SABHA UNSTARRED QUESTION NO. 297

TO BE ANSWERED ON THE 20 th  JULY, 2021

## INCREASE IN MSP FOR KHARIF CROPS

## 297.        RAVNEET SINGH BITTU:

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

- (a)   the percentage increase in the Minimum Support Price (MSP) of Kharif crops during the last three years, year-wise and crop-wise;
- (b)   whether it is a fact that the changes in MSP of Kharif crops have been made in a very unequal manner with some crops like ragi showing significant rise in prices while in the case of other crops like Tur and Urad Dal, prices changed only by a small percentage in the last few years;
- (c)   whether the Government has some uniform policy in determining the MSP of kharif crops and if so, the details thereof; and
- (d)  the reasons for the wide variance in the percentage increase of the MSP of different types of kharif crops announced by the Government?

## ANSWER

## THE MINISTER OF AGRICULTURE AND FARMERS WELFARE

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

- (a):  the percentage increase in Minimum Support Prices (MSP) for Kharif crops since 201920 is given at Annex .
- (b) to (d):   Government fixes MSPs on the basis of the recommendations of the Commission for  Agricultural  Costs  &  Prices  (CACP),  after  considering  the  views  of  State  Governments and Central Ministries/Departments concerned.

While  recommending  MSP,  CACP  considers  various  factors  viz.  cost  of  production, 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. Each mandated MSP crop has different cost of production on account of difference in input  used,  yield,  rainfall,  resource  endowment  etc.  However,  while  recommending  MSP, CACP ensures that's all mandated crops at least get a minimum of 50 per cent return over its

cost of production.

Annex Annex referred to in reply to part (a) of Lok Sabha Unstarred Question No. 297 due for reply on 20.07.2021

## Percentage Increase in MSP

| Sl. No.   |                   |               | MSP (Rs. per qtl)   | MSP (Rs. per qtl)   | MSP (Rs. per qtl)   | Percentage increase in MSP (%)   | Percentage increase in MSP (%)   | Percentage increase in MSP (%)   |
|-----------|-------------------|---------------|---------------------|---------------------|---------------------|----------------------------------|----------------------------------|----------------------------------|
| Sl. No.   | Commodity         | Variety       | 2019-20             | 2020-21             | 2021- 22            | 2019-20 over 2018- 19            | 2020-21 over 2019- 20            | 2021-22 over 2020-21             |
|           | KHARIF CROPS      |               |                     |                     |                     |                                  |                                  |                                  |
| 1         | PADDY             | Common        | 1815                | 1868                | 1940                | 3.7                              | 2.9                              | 3.9                              |
|           |                   | Grade 'A'     | 1835                | 1888                | 1960                | 3.7                              | 2.9                              | 3.8                              |
| 2         | JOWAR             | Hybrid        | 2550                | 2620                | 2738                | 4.9                              | 2.7                              | 4.5                              |
|           |                   | Maldandi      | 2570                | 2640                | 2758                | 4.9                              | 2.7                              | 4.5                              |
| 3         | BAJRA             |               | 2000                | 2150                | 2250                | 2.6                              | 7.5                              | 4.7                              |
| 4         | RAGI              |               | 3150                | 3295                | 3377                | 8.7                              | 4.6                              | 2.5                              |
| 5         | MAIZE             |               | 1760                | 1850                | 1870                | 3.5                              | 5.1                              | 1.1                              |
| 6         | TUR (ARHAR)       |               | 5800                | 6000                | 6300                | 2.2                              | 3.4                              | 5.0                              |
| 7         | MOONG             |               | 7050                | 7196                | 7275                | 1.1                              | 2.1                              | 1.1                              |
| 8         | URAD              |               | 5700                | 6000                | 6300                | 1.8                              | 5.3                              | 5.0                              |
| 9         | GROUNDNUT         |               | 5090                | 5275                | 5550                | 4.1                              | 3.6                              | 5.2                              |
| 10        | SUNFLOWER SEED    |               | 5650                | 5885                | 6015                | 4.9                              | 4.2                              | 2.2                              |
| 11        | SOYABEEN (yellow) |               | 3710                | 3880                | 3950                | 9.1                              | 4.6                              | 1.8                              |
| 12        | SESAMUM           |               | 6485                | 6855                | 7307                | 3.8                              | 5.7                              | 6.6                              |
| 13        | NIGERSEED         |               | 5940                | 6695                | 6930                | 1.1                              | 12.7                             | 3.5                              |
| 14        | COTTON            | Medium Staple | 5255                | 5515                | 5726                | 2.0                              | 4.9                              | 3.8                              |
|           |                   | Long Staple   | 5550                | 5825                | 6025                | 1.8                              | 5.0                              | 3.4                              |

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