Lok Sabha Question No. 349 (UNSTARRED), answered on 2015-12-01
Subject: Increase in MSP for Pulses
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: SATISH KUMAR GAUTAM, J.C. DIVAKAR REDDY, RAJESHBHAI NARANBHAI CHUDASAMA, M. B. RAJESH, KRISHNAN NARAYANASAMY RAMACHANDRAN

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

## LOK  SABHA UNSTARRED QUESTION NO. 349

TO BE ANSWERED ON THE 1 ST  DECEMBER, 2015

## INCREASE IN MSP FOR PULSES

349.   SHRI SATISH KUMAR GAUTAM:

SHRI J.C. DIVAKAR REDDY:

SHRI RAJESHBHAI CHUDASAMA:

SHRI M.B. RAJESH:

SHRI K.N. RAMACHANDRAN:

Will the Minister of AGRICULTURE AND FARMERS WELFARE कृ षि एवं ककसान कल्याण मंत्री be pleased to state:

- (a) the details of the criteria fixed by the Government to determine the MSP of agricultural produce;
- (b) whether the Government proposes to change the formula for determining the MSP, if so, the details thereof;
- (c) the  details  of  the  estimated  cost  of  production  of  major  crops  including  different foodgrain crops and their Minimum Support Price (MSP) after each of the revisions during the last three years and the current year, crop-wise and year-wise;
- (d) whether  the  Government  has  increased  the  MSP  for  various  agricultural  produce including pulses during the current year, if so, the details thereof;
- (e) whether the Government proposes to provide bonus to the farmers for cultivating food crops including pulses, if so, the details thereof; and
- (f) the details of the profit margin obtained by the farmers from growing food crops and the measures taken to increase it?

## ANSWER

MINISTER OF STATE IN THE MINISTRY OF AGRICULTURE AND FARMERS WELFARE कृ षि एवं ककसान कल्याण मंत्राऱय में राज्य मंत्री (SHRI  MOHANBHAI  KUNDARIA)

- (a): Government fixes Minimum Support Price (MSP) for the major agricultural produce on the recommendation of the Commission for Agricultural Costs & Prices (CACP), views of the State  Governments,  concerned  Central  Ministries/Departments  and  other  relevant  factors. While  formulating  its  recommendations  on  price  policy,  CACP  considers  various  important factors which, interalia, include cost of cultivation, trends in market prices, demand and supply situation, effect on general price level, effect on cost of living etc.

(b): Methodology for estimating the cost of production is reviewed from time to time. A Committee  constituted  by  the  Government  under  the  Chairmanship  of  Director,  National Centre for Agricultural Economics and Policy Research in 2013, to examine the methodological  issues  in  fixing  Minimum  Support  Prices  has  submitted  its  Report.  The recommendations of the Committee are under consideration of the Government.

(c): All  India  weighted  average  all  paid  out  cost  of  production  including  family  labour  as estimated by the Commission for Agricultural Costs & Prices (CACP) of foodgrains and their MSPs since 2012-13 are at Annexure I.

(d) & (e): Government has announced the MSPs for the kharif and rabi crops, including pulses of 2015-16 season. A bonus of Rs. 200 per quintal over and above the MSP is also payable in respect of kharif pulses. A bonus of Rs. 75 per quintal over and above the MSP is payable  in  respect  of  rabi  pulses  of  2015-16  season.  The  MSPs  of  kharif  and  rabi  crops, including pulses for 2012-13 to 2015-16 season are at Annexure II .

(f): The difference in cost of production of a crop and its MSP indicates the profit margin of the farmer. However, MSP is only one of the instruments for assuring higher returns to the farmers.  Government  has  taken  several  steps  for  increasing  productivity  which,  interalia, include increasing investment, improving farm practices, issuance of soil health cards, micro irrigation, improving rural infrastructure, increase in credit flow, improving delivery of technology and other inputs, extension and marketing etc.

## Statement referred to in reply to part (c) of Lok Sabha Unstarred Question No. 349 for answer on 01.12.2015 regarding 'Increase in MSP for Pulses'

## All India Weighted Average Cost of Production* and MSP

(Rs. Per quintal)

| S. No.   | Commodity      | 2012-13        | 2012-13   | 2013-14        | 2013-14   | 2014-15        | 2014-15   | 2015-16        | 2015-16   |
|----------|----------------|----------------|-----------|----------------|-----------|----------------|-----------|----------------|-----------|
|          |                | Cost of Prodn. | MSP       | Cost of Prodn. | MSP       | Cost of Prodn. | MSP       | Cost of Prodn. | MSP       |
| 1.       | Paddy          | 814            | 1250      | 961            | 1310      | 978            | 1360      | 1020           | 1410      |
| 2.       | Wheat          | 716            | 1350      | 679            | 1400      | 744            | 1450      | 785            | 1525      |
| 3.       | Jowar          | 1240           | 1500      | 1269           | 1500      | 1370           | 1530      | 1467           | 1570      |
| 4.       | Bajra          | 779            | 1175      | 768            | 1250      | 832            | 1250      | 893            | 1275      |
| 5.       | Maize          | 814            | 1175      | 860            | 1310      | 914            | 1310      | 941            | 1325      |
| 6.       | Ragi           | 1412           | 1500      | 1338           | 1500      | 1474           | 1550      | 1688           | 1650      |
| 7.       | Barley         | 620            | 980       | 676            | 1100      | 735            | 1150      | 776            | 1225      |
| 8.       | Arhar (Tur)    | 2765           | 3850      | 3090           | 4300      | 3105           | 4350      | 3237           | 4425      |
| 9.       | Moong          | 3430           | 4400      | 3775           | 4500      | 3890           | 4600      | 3993           | 4650      |
| 10.      | Urad           | 3102           | 4300      | 3144           | 4300      | 3225           | 4350      | 3455           | 4425      |
| 11.      | Gram           | 1696           | 3000      | 1786           | 3100      | 1902           | 3175      | 2124           | 3425      |
| 12.      | Masur (Lentil) | 1926           | 2900      | 1799           | 2950      | 1866           | 3075      | 2015           | 3325      |

ANNEXURE II

## Statement referred to in reply to parts (d) & (e) of Lok Sabha Unstarred Question No. 349 for answer on 01.12.2015 regarding 'Increase in MSP for Pulses'

## Minimum Support Prices

(Rs. per quintal)

| Commodity          | Variety   | 2012-13   | 2013-14   | 2014-15   | 2015-16   |
|--------------------|-----------|-----------|-----------|-----------|-----------|
| Kharif Crops       |           |           |           |           |           |
| Paddy              | Common    | 1250      | 1310      | 1360      | 1410      |
|                    | Grade A   | 1280      | 1345      | 1400      | 1450      |
| Jowar              | Hybrid    | 1500      | 1500      | 1530      | 1570      |
|                    | Maldandi  | 1520      | 1520      | 1550      | 1590      |
| Bajra              |           | 1175      | 1250      | 1250      | 1275      |
| Maize              |           | 1175      | 1310      | 1310      | 1325      |
| Ragi               |           | 1500      | 1500      | 1550      | 1650      |
| Arhar (Tur)        |           | 3850      | 4300      | 4350      | 4425$     |
| Moong              |           | 4400      | 4500      | 4600      | 4650$     |
| Urad               |           | 4300      | 4300      | 4350      | 4425$     |
| Groundnut in shell |           | 3700      | 4000      | 4000      | 4030      |
| Sunflower seed     |           | 3700      | 3700      | 3750      | 3800      |
| Soyabean           | Black     | 2200      | 2500      | 2500      | -         |
|                    | Yellow    | 2240      | 2560      | 2560      | 2600*     |
| Sesamum            |           | 4200      | 4500      | 4600      | 4700      |
| Nigerseed          |           | 3500      | 3500      | 3600      | 3650      |
| Rabi Crops         |           |           |           |           |           |
| Wheat              |           | 1350      | 1400      | 1450      | 1525      |
| Barley             |           | 980       | 1100      | 1150      | 1225      |
| Gram               |           | 3000      | 3100      | 3175      | 3425^     |
| Masur (Lentil)     |           | 2900      | 2950      | 3075      | 3325^     |
| Rapeseed/Mustard   |           | 3000      | 3050      | 3100      | 3350      |
| Safflower          |           | 2800      | 3000      | 3050      | 3300      |

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