Lok Sabha Question No. 320 (UNSTARRED), answered on 2023-12-05
Subject: Implementation of MSP
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: Raghu Ramakrishna Raju Kanumuru

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

## LOK SABHA UNSTARRED QUESTION NO. 320

TO BE ANSWERED ON THE 5 TH  DECEMBER, 2023

## IMPLEMENTATION OF MSP

## 320. 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  ineffective  implementation  of  Minimum  Support  Price  (MSP)  and  nonprocurement of all the crops at the MSP is one of the main concerns of farmers and this scenario  builds  a  strong  rationale  for  giving  'legal  status'  to  MSP  as  it  is  the  floor  or reference price and which will certainly bind the private players to procure those crops at least at the MSP;

(b) if so, the details thereof;

- (c)  whether  a  rise  in  their  income  could  be  the  long-term  answer  to  farmers'  financial distress and to ensure this rise in income, the Government should focus on setting up an effective system to provide assured purchase and returns to farmers for all major crops at the MSP, as it was done in the case of wheat and rise or extend subsidies on input costs; and

(d) if so, the details thereof and the corrective measures being taken by the Government to alleviate the problems of farmers?

## ANSWER

THE MINISTER OF AGRICULTURE AND FARMERS WELFARE

क ृ िष एवं िकसान कʞाण मंũी (SHRI NARENDRA SINGH TOMAR)

(a)  to  (d):  Government  fixes  Minimum  Support  Prices  (MSPs)  for  22  mandated agricultural crops and Fair & Remunerative Price (FRP) for sugarcane on the basis of the recommendations  of  the  Commission  for  Agricultural  Costs  and  Prices  (CACP),  after considering  the  views  of  the  State  Governments  and  Central  Ministries/Departments concerned.  While recommending MSPs for crops, CACP factor in the input cost incurred by  the  farmers.  Besides,  the  Union  Budget  for  2018-19  had  announced  the  predetermined  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 (including wheat) and other commercial crops with a margin of at least 50 per cent over all India weighted average cost of production from the agricultural year 2018-19.

Further,  to  realise  the  objective  of  MSP  policy,  Government  extends  price  support  for paddy and wheat through the Food Corporation of India (FCI) and State Agencies. Under this  policy,  whatever  food  grains  are  offered  by  farmers  within  the  stipulated  period  & conforming to  the specifications  prescribed  by  Government, are purchased at  MSP  by the  State  Government  agencies  including  FCI  for  Central  Pool. Additionally,  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.

Besides  Government  has  adopted  and  implemented  several  policies,  developmental programmes, schemes and reforms for achieving higher incomes for the farmers, which are as follow:

- i. Supplementary income transfers under PM-KISAN of Rs. 6000/- per year in three equal instalments to eligible beneficiaries.
- ii. Increase in Minimum Support Price (MSPs) for all Kharif & Rabi crops ensuring a minimum of 50 percent of profit margin on the cost of production.
- iii. Crop insurance under Pradhan Mantri Fasal Bima Yojna (PMFBY).
- iv. Better access to irrigation under Pradhan Mantri Krishi Sinchayee Yojana (PMKSY).
- v. Special attention for creation of infrastructure through Agri Infrastructure Fund (AIF) with a size of Rs. 100,000 crores.
- vi. New procurement policy under PM-AASHA in addition to FCI operations.
- vii.  Kisan Credit Cards (KCC) offering production loan to even dairy & fishery farmers besides agricultural crops.
- viii. Formation and promotion of 10,000 Farmer Producer Organisations (FPO).
- ix.  National Mission for Sustainable Agriculture (NMSA), which aims to evolve and implement strategies to make Indian agriculture more resilient to the changing climate.
- x.   Adoption of drone technologies in agriculture which has potential to revolutionize the Indian Agriculture.
- xi.   Benefits accruing under Bee-Keeping, Rashtriya Gokul Mission, Blue Revolution, Interest Subvention Scheme, Agro-forestry, Restructured Bamboo Mission, implementation of new  generation watershed guidelines, etc.
- xii.    Focus on application of digital technology at all stages of agricultural value chain.
- xiii.   Supply of fertilizer to farmer at subsidized price so as to reduce input cost.
- xiv.   Production and availability of quality seeds to farmers.

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