Lok Sabha Question No. 54 (STARRED), answered on 2024-02-06
Subject: Demands of Farmers' Unions
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: Manne Srinivas Reddy, Raghu Ramakrishna Raju Kanumuru

## GOVERNMENT OF INDIA MINISTRY OF AGRICULTURE & FARMERS WELFARE

## DEPARTMENT OF AGRICULTURE & FARMERS WELFARE

## LOK SABHA STARRED QUESTION NO. 54

TO BE ANSWERED ON 06 TH  FEBRUARY, 2024

## DEMANDS OF FARMERS' UNIONS

## *54.  SHRI MANNE SRINIVAS REDDY SHRI KANUMURU RAGHU RAMA KRISHNA RAJU

Will the Minister of AGRICULTURE AND FARMERS WELFARE क ृ िष एवं िकसान कʞाण मंũी be pleased to state:

- (a)    whether  the  Samyukt  Kisan  Morcha  and  18  other  farmers'  unions  have  organized  a 'Mahapanchayat'  and  other  stage  protests  demanding  the  enactment  of  a  law  guaranteeing Minimum Support  Price  (MSP)  for  crops  and  implementation  of  the  Swaminathan  Commission report;
- (b) if so, the details of such issues discussed/decisions arrived at so far; and
- (c) if not, the reasons for not holding meetings to resolve farmers issues with regard to MSP till now and the demands of various States in this regard?

## ANSWER

MINISTER OF AGRICULTURE & FARMERS WELFARE

क ृ िष एवं िकसान कʞाण मंũी (SHRI ARJUN MUNDA)

- (a) to (c): A Statement is laid on the Table of the House.

## STATEMENT REFERRED TO IN REPLY TO PARTS (a) to (c) OF LOK SABHA STARRED QUESTION  NO  54  DUE  FOR  ANSWER  ON  06 TH   FEBRUARY,  2024  REGARDING 'DEMANDS OF FARMERS' UNIONS'

(a) to (c): Government fixes minimum support prices (MSPs) for 22 mandated crops, on the basis of the recommendations of the Commission for Agricultural Costs &Prices (CACP), after  considering  the  views  of  State  Governments,  Central  Ministries/  Departments  other stakeholders,  concerned.  While  recommending  MSP,  CACP  considers  important  factors  like overall  demand-supply  conditions,  cost  of  production,  domestic  and  international  prices, intercrop price parity, 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. The National Commission on Farmers (NCF) was constituted under the Chairmanship of Prof. M.S. Swaminathan, in November 2004, with a mandate to examine the various issues which include a medium-term strategy for food and nutrition security, enhancing productivity, profitability and sustainability, policy reform for flow of rural credit, cost competitiveness of farm commodities,  among  others.  The  Commission  submitted  its  final  report  in  2006.  It  also prepared  the  Draft  National  Policy  for  Farmers,  which  was  subsequently  approved  by Government as National Policy for Farmers (NPF), 2007. However, one of the recommendations of NCF relating to Agricultural Price Policy -Minimum Support Price (MSP) should  be  at  least  50  percent  more  than  the  weighted  average  cost  of  production-  was  not included in NPF. To give recognition to one of the important recommendations of NCF on Price Policy, Government in its Union Budget for 2018-19 had made an historical announcement to keep MSP at a level of one and half times of the cost of production as a pre-determined principle. Accordingly, MSPs for all mandated Kharif, Rabi and other commercial crops have been fixed with a return of at least 50 per cent over all India weighted average cost of production, each year, since    2018-19. The procurement of foodgrain has increased from 761.40 lakh metric tonnes in 2014-15 to  1062.69  lakh  metric  tonnes  in  2022-23  benefitting  more  than  1.6  crore  farmers.  The expenditure incurred (at MSP values) on procurement of foodgrains increased from 1.06 lakh crores to 2.28 lakh crores, during the same period. Moreover, the Government has constituted a committee, consisting of representatives of  farmers,  eminent  agricultural  economists  and  scientists,  and  senior  officers  of  Central Government. The Committee is to make suggestions so as to make MSP more effective and transparent;  to  promote  natural  farming;  and  to  change  crop  pattern  keeping  in  mind  the changing needs of the country. The meetings of the Committee are being held on regular basis thirty-seven actively to deliberate on the subject matters assigned to it. Till date, meetings/workshops have been held by the Committee.

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