Lok Sabha Question No. 184 (UNSTARRED), answered on 2015-07-21
Subject: MSP for Agricultural Produce
Ministry: AGRICULTURE
Asked by: ANANDRAO  ADSUL, SRINIVAS KESINENI, JYOTIRADITYA MADHAVRAO SCINDIA, SONA RAM CHOUDHARY, NINONG ERING, PARASURAMAN K., JAYADEV GALLA, KOTHA PRABHAKAR REDDY

GOVERNMENT OF INDIA

MINISTRY OF AGRICULTURE

DEPARTMENT OF AGRICULTURE & COOPERATION

**LOK  SABHA**

**UNSTARRED QUESTION NO.184**

TO BE ANSWERED ON THE  21 ST JULY, 2015

**MSP FOR AGRICULTURAL PRODUCE**

184. 	SHRI ANANDRAO ADSUL:

SHRI KESINENI NANI:

SHRI JYOTIRADITYA M. SCINDIA:

COL. SONARAM CHOUDHARY:

SHRI NINONG ERING:

SHRI K. PARASURAMAN:

SHRI JAYADEV GALLA:

SHRI PRABHAKAR REDDY KOTHA:

Will the Minister of AGRICULTURE 	      ‡ãðŠãäÓã ½ãâ¨ããè

be pleased to state:

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(a) 	the details of the existing methodology to determine the Minimum Support Price for various agricultural produce;

(b) 	whether the Government is contemplating to review the procedure and norms to fix MSP for agricultural produce on the basis of production cost of agricultural produce, if so, the details thereof;

(c) 	whether the Government has announced MSP for the kharif crops including paddy, pulses, maize, groundnut etc. for 2015-16, if so, the details thereof along with the MSP of various agricultural produce crop-wise during the last three years and current year, commodity, year-wise;

(d) 	the details of the increase in MSP for various crops including wheat, paddy, cumin etc. for 2015-16 crop-wise; and

(e) 	whether the increase in MSP of various crops is not made as per the recommendations made by the Commission for Agricultural Costs and Prices (CACP), if so, the details thereof along with the steps taken by the Government to provide adequate MSP to the farmers?

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### ANSWER

MINISTER OF STATE IN THE MINISTRY OF AGRICULTURE

‡ãðŠãäÓã  ½ãâ¨ããÊã¾ã ½ãñâ Àã•¾ã ½ãâ¨ããè           ( 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

Contd…2/-

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and other relevant factors. While formulating its recommendations on price policy, CACP considers various important factors that include cost of cultivation, trends in market prices, demand and supply situation, effect on general price level, effect on cost of living etc. The data on cost of cultivation are collected mostly by the State Agriculture Universities from the farmers through stratified random sampling method under the Comprehensive Scheme for the Study of Cost of Cultivation.

(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) & (d):	Government has announced the MSPs for the kharif crops of 2015-16 season. MSPs of rabi crops, including wheat, for 2015-16 season have not been announced. The MSPs of kharif crops for 2012-13 to 2015-16 season are at Annexure-I and of rabi crops for 2011-12 to 2014-15 season are at Annexure –II.

(e):	MSPs of all kharif crops for 2015-16 season have been fixed as recommended by CACP. Government has, however, announced a bonus of Rs.200 per quintal over and above the MSPs for pulses.

Procurement under MSP is undertaken by the designated Central and State Government agencies and Cooperatives. MSP is in the nature of minimum price offered by the Government. Producers have the option to sell their produce to Government agencies or in the open market as is advantageous to them.

**Annexure-I**

**Statement referred to in reply to parts (c ) & (d) of Unstarred Question No. 184 for answer on 21.07.2015 regarding “MSP for Agricultural Produce”**

**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$         |
| Cotton             | Medium Staple | 3500          | 3700          | 3750          | 3800          |
|                    | Long Staple   | 3900          | 4000          | 4050          | 4100          |
| 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          |

$ : Bonus of Rs. 200 per quintal is payable over and above the MSP.

*  : for 2015-16 single MSP for soyabean has been fixed which will be applicable to both the varieties.

***ANNEXURE II***

**Statement referred to in reply to parts (c ) & (d) of Unstarred Question No. 184 for answer on 21.07.2015 regarding “MSP for Agricultural Produce”**

**Minimum Support Prices**

*(Rs. per quintal)*

| **Commodity**    | **2011-12**   | **2012-13**   | **2013-14**   | **2014-15**   |
|------------------|---------------|---------------|---------------|---------------|
| **Rabi Crops**   |               |               |               |               |
| Wheat            | 1285          | 1350          | 1400          | 1450          |
| Barley           | 980           | 980           | 1100          | 1150          |
| Gram             | 2800          | 3000          | 3100          | 3175          |
| Masur (Lentil)   | 2800          | 2900          | 2950          | 3075          |
| Rapeseed/Mustard | 2500          | 3000          | 3050          | 3100          |
| Safflower        | 2500          | 2800          | 3000          | 3050          |

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