Lok Sabha Question No. 2527 (UNSTARRED), answered on 2024-12-10
Subject: Minimum Support Price for Onions
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: Shri Rajabhau Parag Prakash Waje

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

## LOK SABHA UNSTARRED QUESTION NO-2527

TO BE ANSWERED ON 10 TH  DECEMBER, 2024

## MINIMUM SUPPORT PRICE FOR ONIONS

## 2527.  SHRI RAJABHAU PARAG PRAKASH WAJE:

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

- (a) whether the Government is considering introducing a Minimum Support Price (MSP) for  onions,  given  that  it  is  a  key  crop  for  farmers  in  Nashik,  India's  main  onion-producing region;
- (b) if so, the steps being taken to establish an MSP of at least 30 per kilogram to protect onion farmers from market fluctuations and rising production costs;
- (c) the manner in which the Ministry plans to ensure timely procurement and payments to onion farmers to avoid financial distress; and
- (d) whether the Government intends to strengthen market interventions to help stabilize onion prices and prevent extreme price volatility, which impacts both farmers and consumers?

## ANSWER

## THE MINISTER OF STATE FOR AGRICULTURE AND FARMERS WELFARE

कृ ͪष एवं ͩकसान कãयाण राÏय मंğी

(SHRI RAMNATH THAKUR)

(a) to (d): Every  year,  Government  fixes  Minimum  Support  Prices  (MSPs)  for  22 mandated agricultural crops for the country as a whole and not region or state-specific, based on  the  recommendations  of  Commission  for  Agricultural  Costs  &  Prices  (CACP),  after considering the views of State Governments and Central Ministries/Departments concerned. The 22 mandated  crops include 14 Kharif crops viz. paddy, jowar, bajra, maize, ragi, tur (arhar), moong, urad, groundnut, soyabean, sunflower, sesamum, nigerseed, cotton and 6 Rabi crops viz. wheat, barley, gram, masur (lentil), rapeseed & mustard, safflower and two commercial crops viz. jute and copra. The inclusion of crops under MSP framework is dependent on several factors which include relatively large shelf life, widely grown, item of mass consumption, essential for food security, among others.

Government  implements  Market  Intervention  Scheme  (MIS)  for  perishable agricultural  and  horticultural  commodities  which  are  not  covered  under  the  MSP  on  the request of State/UT Government concerned. The objective of intervention is to protect the growers of these commodities from making distress sale in the event of a bumper crop during the  peak  arrival  period  when  the  prices  tend  to  fall  below  economic  levels  and  cost  of production. The  condition  as  per  the  scheme  is  that  there  should  be  either  at  least  a  10 percent increase in production or a 10 percent decrease in the ruling market prices over the previous normal year. The scheme is implemented at the request of a State/UT government which is ready to bear 50 percent of the loss (25 percent in case of North-Eastern States), if any, incurred on its implementation.

Government has removed the Minimum Export Price (MEP) on onions and reduce the export duty from 40% to 20% to increase onion exports, resulting is a rise in income for onion-producing farmers.

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