Lok Sabha Question No. 1593 (UNSTARRED), answered on 2016-07-26
Subject: MSP for Agricultural Produce
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: MANOJ KUMAR TIWARI, KAPIL MORESHWAR PATIL, CHANDRA PRAKASH JOSHI, YOGI ADITYANATH, B.N. CHANDRAPPA, MALLIKARJUN  KHARGE, NARANBHAI KACHHADIA, DODDAALAHALLI KEMPEGOWDA SURESH

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

## LOK  SABHA UNSTARRED QUESTION NO.1593

TO BE ANSWERED ON THE  26 TH  JULY, 2016

## MSP FOR AGRICULTURAL PRODUCE

1593.  SHRI MANOJ TIWARI:

SHRI KAPIL MORESHWAR PATIL:

SHRI CHANDRA PRAKASH JOSHI:

SHRI YOGI ADITYA NATH:

SHRI B.N. CHANDRAPPA:

SHRI MALLIKARJUN KHARGE:

SHRI NARANBHAI KACHHADIYA:

SHRI D.K. SURESH:

Will the Minister of AGRICULTURE AND FARMERS WELFARE   ‡ãðŠãäÓã एवं कसान कयाण ½ãâ¨ããè be pleased to state:

- (a) whether it  is  a  fact  that  the  majority  of  farmers  particularly  small  and  marginal farmers are not aware of Government schemes and policies including Minimum Support Price (MSP);
- (b) if  so,  the  details  thereof  along  with  the  steps  taken  to  disseminate  information about various schemes to farmers;
- (c) whether the Government has conducted any survey to find out the number and percentage of farmers who have been benefited under various Government schemes including MSP and if so, the details thereof;
- (d) whether the Government has any proposal to revamp the current mechanism of fixation/declaration of MSP for crops, if so, the details thereof; and
- (e) the steps taken by the Government to focus its various agricultural schemes to reach  the  target  groups  such  as  marginal,  small  and  medium  farmers  and  make  the regulatory mechanism system more farmer friendly?

## ANSWER

MINISTER OF  STATE IN THE  MINISTRY OF  AGRICULTURE AND  FARMERS  WELFARE

‡ãðŠãäÓã एवं कसान कयाण ½ãâ¨ããÊã¾ã  ½ãñâ  Àã·¾ã  ½ãâ¨ããè (  SHRI  S.S. AHLUWALIA )

(a) to (c): A study conducted by NITI Aayog on efficacy of Minimum Support Price (MSP)  has  found  that  81% of farmers are aware of  MSP fixed by the Government for

different  crops.  The  study  also  found  that  MSP  declared  by  the  Government  has encouraged  78%  of  the  farmers  covered  under  the  study  for  adopting  improved methods of farming such as high yielding varieties of seeds, organic manure, chemical fertilizer, pesticides and improved methods of harvesting etc. due to remunerative price. The  study  has  also  revealed  that  majority  of  farm  households  are  in  favour  of  MSP since it ensures guaranteed income to the farmers by acting as a floor price.

Government has taken several initiatives to give wider publicity for Government Schemes  and  Policies  including  Minimum  Support  Price  (MSP)  through  audio  and visual media, dedicated television channels and use of Information Technology.

Till 19 th July, 2016, 2,26,99,971 soil health cards have been issued to the farmers under Soil Health Card Scheme in 33 States/UTs in the country. Regarding MSP the data on the number and percentage of farmers who have received the benefits are not available. However, 33.01% of the total production of 103.36 million tonnes of rice and 29.87% of the total production of 94.04 million tonnes of wheat were procured at MSP in 2015-16.

(d): Methodology for estimating the cost of production is reviewed from time to time. Government has constituted a Committee under the Chairmanship of the then Director, National Centre for Agricultural Economics and Policy (NCAP) in 2013, to examine the methodological  issues  in  fixing  Minimum  Support  Prices.  One  of  the  Terms  of Reference (ToR) of the Committee was to examine the cost concepts for the purpose of fixing  Minimum  Support Prices and suggest various factors for improvement so as to make its more realistic. The report has been submitted and is under consideration of the Government.

(e): Department of Agriculture, Cooperation & Farmers Welfare implements various schemes  for  development  of  agriculture  and  the  welfare  of  farmers  through    State Governments, under which support is provided to all farmers including marginal, small and medium farmers.

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