Lok Sabha Question No. 4106 (UNSTARRED), answered on 2025-03-25
Subject: Funds allocated for Procurement of Crop at MSP in Haryana
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: Kumari Selja

## GOVERNMENT OF INDIA

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

## LOK SABHA

## UNSTARRED QUESTION NO. 4106

TO BE ANSWERED ON THE 25 TH  MARCH, 2025

## FUNDS ALLOCATED FOR PROCUREMENT OF CROP AT MSP IN HARYANA

4106.  KUMARI SELJA :

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

- (a) the details of the fund allocated every year for procuring crops at MSP in Haryana during the last ten years; and
- (b) whether the Union Government gives legal status of MSP or this is done by the State Government?

## ANSWER

## MINISTER OF STATE FOR AGRICULTURE AND FARMERS WELFARE

क ृ िष एवं िकसान क̵  याण राǛ मंũी (SHRI RAMNATH THAKUR)

- (a) :  State wise funds are not allocated for procuring crops at Minimum Support Price (MSP). Instead, Department of Agriculture & Farmers Welfare reimburses the losses, if any, incurred by Central Nodal agencies in undertaking MSP operations of  notified  pulses,  oilseeds  &  copra.  Further,  Department  of  Food  &  Public Distribution (DFPD) reimburses the expenditure incurred by States that have opted Decentralized  Procurement  (DCP)  mode  after  distribution  of  food  grains  under Pradhan Mantri Garib Kalyan Anna Yojana (PMGKAY). As, Haryana is a non-DCP state, no food subsidy is being released by DFPD to Haryana.
- (b) :  Government of India announces 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), after considering the views of State Governments and Central Ministries/Departments concerned and other relevant factors. Apart, the MSPs of Rapeseed & Mustard and Copra is the basis for fixing the MSP for Toria and Dehusked Coconut respectively. The Union Budget for 2018-19 had announced the pre-determined principle to keep MSP at levels of at least one and half times of the cost  of  production.  Accordingly,  Government  had  increased  the  MSPs  for  all mandated Kharif, Rabi and other commercial crops with a return of at least 50 per cent over all India weighted average cost of production from the agricultural year 2018-19.  Government  also  extends  remunerative  prices  to  farmers  through  its various interventions schemes. Besides, the overall market responds to the current MSP and Government's procurement operations that oblige the market for 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  nutricereals (Millets) and coarse grains are procured by various State Governments it's own in consultation with FCI to the extent that the concerned State Government may utilize them for the distribution under Targeted Public Distribution System (TPDS) as well as in Other Welfare Schemes (OWS). Price Support Scheme, a component of the integrated Pradhan Mantri Annadata Aay SanraksHan Abhiyan (PM-AASHA), is  implemented  within  the  stipulated  period  as  and  when  the  market  prices  of agricultural commodities fall below the notified MSP during peak harvesting period to provide the remunerative price to the farmers. The procurement of the notified pulses, oilseeds and copra conforming to the prescribed Fair Average Quality (FAQ) is  undertaken  by  the  Central  Nodal  Agencies  (CNAs)  like  National  Agricultural Cooperative Marketing Federation of India Ltd. (NAFED) and National Co-operative Consumers'  Federation  of  India  Ltd.  (NCCF)  at  the  MSP  directly  from  the  preregistered farmers through the State level agencies. Further, in order to incentivize the farmers for its contribution for the enhancement of domestic production and to reduce the dependence on import, the Government has allowed the procurement of Tur (Arhar), Urad and Masur under PSS equivalent to 100% of the production of the State for the procurement  year 2023-24 and extended it further for the  year 2024-25 also. The Central Nodal Agencies would undertake the procurement of 100 % of Tur (Arhar), Urad and Masur under the PSS from the farmers those registered on e-Samriddhi of NAFED and e-Sanyukti of NCCF. Further, Cotton and Jute are procured by Government at MSP through Cotton Corporation of India (CCI) and Jute Corporation of India (JCI) respectively.

For the making effective procurement at MSP by Government Agencies and providing  maximum  benefits  of  MSP  to  the  farmers,  procurement  centers  are opened by respective State Government Agencies and Central Nodal Agencies like NAFED,  NCCF,  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.  In  addition  to  the  existing  Mandis  and Depots/Godowns, a large number of the procurement centres are also set up at key points for the convenience of farmers.

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