Lok Sabha Question No. 3187 (UNSTARRED), answered on 2023-08-08
Subject: MSP for Cash Crops
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: N.K. Premachandran

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

## LOK SABHA UNSTARRED QUESTION NO. 3187

TO BE ANSWERED ON THE 8 TH  AUGUST, 2023

## MSP FOR CASH CROPS

## 3187. SHRI N.K. PREMACHANDRAN:

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

- (a)  whether  the  Government  is  considering  the  request  for  including  Rubber,  Tea, Coffee, Cardamom and Pepper under Minimum Support Price Scheme (MSP), if so, the details of action taken thereon;
- (b) whether the Union Government  has received any request from the State Government of  Kerala  for  including  Rubber,  Tea,  Coffee,  Cardamom  and  Pepper under MSP and if so, the details of action taken thereon;
- (c) whether the Government has analysed the agrarian crisis in the State of Kerala due to declining price of those commodities and if so, the action taken thereon;
- (d) whether the Government proposes to intervene in the crisis of farmers who totally depend on agricultural produce for  their livelihood and if so, the action taken thereon;
- (e)  whether  the  Government  proposes  to  formulate  a  comprehensive  package  for survival of farmers engaged in farming of these items; and
- (f)  if so, the details of action taken thereon?

## ANSWER

## THE MINISTER OF AGRICULTURE AND FARMERS WELFARE

क ृ िष एवं िकसान कʞाण मंũी

( SHRI NARENDRA SINGH TOMAR)

- (a) & (b): Government fixes Minimum Support Price (MSP) for 22 mandated crops on the basis of the recommendations of the Commission for Agricultural Costs and Prices (CACP) & views of State Governments and Central Ministries/Departments concerned.

Time to time, suggestions/representations from State Governments including Kerala are received  regarding  the  coverage  of  crops  under  MSP.  However,  inclusion  of  crops under  MSP framework  is  dependent  on  several  factors  which  include  relatively  large shelf life, non- perishable, widely grown, item of mass consumption, essential for food security, among others.

Government has been promoting crops such as Rubber, Tea, Coffee, Cardamom and Pepper, through various schemes and initiatives. National Horticulture Mission promotes holistic growth of the horticulture sector, including the cultivation of plantation crops like fruits, spices, and medicinal plants. The mission provides financial assistance to  farmers for the establishment of orchards and plantations, as well as for improving production, post-harvest handling, and  marketing of horticulture crops. Besides, statutory boards, such as Tea Board, Coffee Board, Rubber Board and Spices Board under administrative control of Ministry of Commerce and Industry are responsible for the production, development, marketing and overall competitiveness of these commodities. At present, there is no proposal to bring Rubber, Tea, Coffee, Cardamom and Pepper under MSP arrangement.

(c)  to  (f):  As  per  Gross  State  Value  Added  (GSVA)  by  Economic Activity  at  Constant Price  (2011-12)  released  by  Ministry  of  Statistics  and  Programme  Implementation (MOSPI),  the  Gross  Value  Added  (GVA)  of  agriculture  and  allied  sector  in  Kerala increased from ₹ 42,333 crores  in 2020-21 to ₹ 44,299  crores in 2021-22, reflecting a growth of 4.6 percent.

Government of India, is committed to the welfare of farmers. It is implementing various centre sector and centrally sponsored schemes covering entire spectrum of agriculture to  address  various  aspects  of  agriculture  and  benefit  the  farmers.  These,  inter  alia, include:

- 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.

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