Lok Sabha Question No. 1212 (UNSTARRED), answered on 2025-02-11
Subject: Traders Refusal to Pay MSP to Cotton and Paddy Farmers
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: Shri Jai Parkash

## GOVERNMENT OF INDIA MINISTRY OF AGRICULTURE AND FARMERS WELFARE

## DEPARTMENT OF AGRICULTURE AND FARMERS WELFARE

## LOK SABHA UNSTARRED QUESTION NO. 1212

TO BE ANSWERED ON THE 11 TH  FEBRUARY, 2025

## TRADERS REFUSAL TO PAY MSP TO COTTON AND PADDY FARMERS

## 1212. SHRI JAI PARKASH:

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

- (a) whether the Government is aware of the problems being faced by cotton and paddy farmers as the traders refuse to give Minimum Support Price (MSP) especially in the State of Haryana, if so, the details thereof;
- (b) the extent to which the Government intends to increase the Minimum Support Price of Kharif crops within the next one year, as is being continuously promised, along with the Cropwise and State-wise details thereof;
- (c)  the  implementation  process for stocking  the paddy crop by the Government, along with State and District-wise details thereof; and
- (d) the details of the systematic measures being taken by the Government to provide debt relief to farmers ?

## ANSWER

THE MINISTER OF STATE FOR AGRICULTURE AND FARMERS WELFARE कृ ͪष एवं ͩकसान कãयाण राÏय मंğी      ( SHRI RAMNATH THAKUR)

- (a): Every  year,  Government  fixes  Minimum  Support  Prices  (MSPs)  for  22  mandated agricultural crops including cotton and paddy for the country as a whole including Haryana, based on the recommendations of Commission for Agricultural Costs & Prices (CACP), after considering the views of State Governments and Central Ministries/Departments concerned.

Procurement of Paddy under MSP operations is mandatorily being carried out through state online portal which has brought substantial transparency in the process with introduction of registration of farmers for sale of their produce at govt. procuring centers/mandis, online land /crop verification and online payment of MSP directly into the farmer's bank account (DBT). During  the  current  Kharif  Marketing  Season  (KMS)  2024-25  (upto  05.01.2025)  53.72  Lakh Metric Tones (LMT) of paddy has been procured from the state of Haryana for which MSP value of Rs. 12,463.32 crore has been paid which benefitted 3.1 lakh farmers.

Procurement of cotton is undertaken by the Cotton Corporation of India (CCI) whenever market prices of cotton fall below the MSP. During current marketing season 2024-25, CCI has opened  more  than  507  procurement  centres  in  152  districts  in  all  cotton-growing  states, including 21 cotton procurement centres in 9 districts of Haryana.  As on 05.02.2025, CCI has procured about 2 lakh quintal kapas (equivalent to 0.38 lakh bales) from Haryana and Rs. 135 crores was paid which benefited 7000 farmers.

(b): Every year Government announces increased MSP of 22 mandated crops at a level of at least 50% more than the cost of production. The details of increase in Minimum Support Prices (MSPs) of Kharif crops entitled to farmers of the country as a whole, including Haryana, during 2024-25 in comparison to 2023-24, are given at Annexure I .

(c): The Procurement of Paddy for Central Pool by State Govt. agencies including Food Corporation of India (FCI) is progressing smoothly during KMS 2024-25(Kharif) and the Statewise quantity of paddy procured up to 05.02.2025 for Central Pool are given at Annexure II .

(d): In order to provide affordable and easy institutional credit to farmers, the government is implementing several schemes including 100% centrally funded Central Sector Scheme known as the Modified Interest Subvention Scheme (MISS) across various States and UTs in India. This  scheme  aims  to  provide  concessional  interest  rates  on  short-term  agricultural  loans obtained by farmers through Kisan Credit Cards (KCC) for their working capital requirements. Under this scheme, farmers receive KCC loans at a subsidized interest rate of 7%. To facilitate this, an up front interest subvention (IS) of 1.5% is provided to financial institutions. Additionally, farmers  who  repay  their  loans  promptly  receive  a  3%  Prompt  Repayment  Incentive  (PRI), effectively reducing the interest rate to 4% per annum. The benefits of IS and PRI are available for loan limits up to Rs.3 lakhs. However, if the short-term loan is taken for allied activities (other than crop husbandry), the loan amount is limited to Rs.2 lakhs only. During the last 10 years from 2014-2024, Rs 1.45 lakh crore has been provided to farmers as interest subvention under MISS.

## Annexure referred to in reply to part (b) of Lok Sabha Un-Starred Question No. 1212 due for reply on 11.02.2025

## Minimum Support Prices (MSPs) of Kharif Crops

(According to crop year) (Rs. per quintal)

| Sl. No.   | Commodity         | Variety     | 2023-24   | 2024-25   | Increase in MSP 2024-25 over 2023-24   |
|-----------|-------------------|-------------|-----------|-----------|----------------------------------------|
|           | KHARIF CROPS      |             |           |           |                                        |
| 1         |                   | Common      | 2183      | 2300      | 117 (5.4)                              |
|           | PADDY             | Grade 'A'   | 2203      | 2320      | 117(5.3)                               |
|           |                   | Hybrid      | 3180      | 3371      | 191(6.0)                               |
| 2         | JOWAR             | Maldandi    | 3225      | 3421      | 196(6.1)                               |
| 3         | BAJRA             |             | 2500      | 2625      | 125(5.0)                               |
| 4         | RAGI              |             | 3846      | 4290      | 444(11.5)                              |
| 5         | MAIZE             |             | 2090      | 2225      | 135(6.5)                               |
| 6         | TUR (ARHAR)       |             | 7000      | 7550      | 550(7.9)                               |
| 7         | MOONG             |             | 8558      | 8682      | 124(1.4)                               |
| 8         | URAD              |             | 6950      | 7400      | 450(6.5)                               |
| 9         | GROUNDNUT         |             | 6377      | 6783      | 406(6.4)                               |
| 10        | SUNFLOWER SEED    |             | 6760      | 7280      | 520(7.7)                               |
| 11        | SOYABEEN (yellow) |             | 4600      | 4892      | 292(6.3)                               |
| 12        | SESAMUM           |             | 8635      | 9267      | 632(7.3)                               |
| 13        | NIGERSEED         |             | 7734      | 8717      | 983(12.7)                              |
| 14        | COTTON Medium     | Staple      | 6620      | 7121      | 501(7.6)                               |
|           |                   | Long Staple | 7020      | 7521      | 501(7.1)                               |

Note: Figures in brackets indicate percentage increase.

## Annexure referred to in reply to part (c) of Lok Sabha Un-Starred Question No. 1212 due for reply on 11.02.2025

| S.No.   | Name of states   |   Quantity of paddy procured (In LMT) |
|---------|------------------|---------------------------------------|
| 1       | Andhra Pradesh   |                                 21.08 |
| 2       | Telangana        |                                 53.95 |
| 3       | Assam            |                                  1.75 |
| 4       | Bihar            |                                 28.14 |
| 5       | Chandigarh       |                                  0.26 |
| 6       | Chhattishgarh    |                                104.48 |
| 7       | Gujarat          |                                  0.35 |
| 8       | Haryana          |                                 53.72 |
| 9       | Himachal Pradesh |                                  0.37 |
| 10      | Jharkhand        |                                  0.11 |
| 11      | J&K              |                                  0.33 |
| 12      | Kerala           |                                  1.47 |
| 13      | Madhya Pradesh   |                                 43.53 |
| 14      | Maharashtra      |                                  8.54 |
| 15      | Odisha           |                                 48.47 |
| 16      | Punjab           |                                173.33 |
| 17      | Tripura          |                                  0.17 |
| 18      | Tamilnadu        |                                  9.44 |
| 19      | Uttar Pradesh    |                                 54.83 |
| 20      | Uttarakhand      |                                  6.73 |
| 21      | West Bengal      |                                 21.92 |
|         | Total            |                                632.97 |

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