Lok Sabha Question No. 2671 (UNSTARRED), answered on 2023-12-19
Subject: MSP Committee
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: Sukhbir Singh Badal

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

## LOK SABHA UNSTARRED QUESTION NO. 2671

TO BE ANSWERED ON THE 19 TH  DECEMBER, 2023

## MSP COMMITTEE

2671.  SHRI SUKHBIR SINGH BADAL:

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

- (a) whether the Government had agreed to the demands of the farmers' body bilaterally who had suspended farmers agitation on the promise of rolling back of three farm bills and formation of a committee on guaranteed MSP along with other demands;
- (b) the details of the promises made by the Government;
- (c) whether the Government has formed the committee on guaranteed MSP as promised bilaterally to the farmers' joint body but have not made farmers' unions part of the committee; and
- (d) the  reasons  for  not  making  farmers'  body  as  a  part  of  the  MSP  committee  despite agreeing with them bilaterally with farmers' joint body?

## ANSWER

MINISTER OF AGRICULTURE AND FARMERS WELFARE

कृ ͪष एवं ͩकसान कãयाण मंğी (SHRI ARJUN MUNDA)

- (a) to (d): The  Farm  Laws,  namely  -  (i)  the  Farmers  (Empowerment  and  Protection) Agreement  on  Price  Assurance  and  Farm  Services  Act,  2020;  (ii)  the  Farmers'  Produce Trade  and  Commerce  (Promotion  and  Facilitation)  Act,  2020;  and  (iii)  the  Essential Commodities (Amendment) Act, 2020 were repealed vide the Farm Laws Repeal Act, 2021 (No. 40 of 2021) vide notification dated 30 th  November, 2021.

The Government of India announces Minimum Support Prices (MSP) for 22 mandated agricultural  crops  based  on  recommendations  from  the  Commission  for  Agricultural  Costs and  Prices  (CACP).  The  CACP  takes  into  account  various  factors  when  suggesting  MSP, including  overall  demand-supply  conditions,  cost  of  production,  domestic  and  international prices,  inter-crop  price  parity,  terms  of  trade  between  agricultural  and  non-agricultural sectors, and the potential impact on the economy. Ensuring rational utilization of land, water, and production resources is also a key consideration.

In  the  Budget  for  2018-19,  the  Government  made  a  decision  to  maintain  MSP  at  a level  of  one  and  a  half  times  the  cost  of  production  as  a  predetermined  principle. Consequently, MSPs for all mandated Kharif, Rabi, and other commercial crops have been set  with  a  margin  of  at  least  50  per  cent  over  the  all  India  weighted  average  cost  of production since 2018-19. The Government has formed MSP Committee in July, 2022 which consists of representatives of farmers, Central Government, State Governments, Agricultural Economists & Scientists, etc.

The  committee  is  to  make  suggestions  so  as  to  make  MSP  more  effective  and transparent; to promote natural farming, to change crop pattern keeping in mind the changing needs  of  the  country.  The  meetings  of  the  committee  are  being  held  on  regular  basis  to deliberate  on  the  subject  matter  assigned  to  it.  So  far,  35  rounds  of  meetings  have  taken place.

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