Lok Sabha Question No. 1413 (UNSTARRED), answered on 2015-12-08
Subject: MSP and Market Price of Foodgrains
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: PRATAPRAO GANPATRAO JADHAV, JASVANTSINH SUMANBHAI BHABHOR

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

## LOK  SABHA UNSTARRED QUESTION NO. 1413

TO BE ANSWERED ON THE 8 TH   DECEMBER, 2015

## MSP AND MARKET PRICE OF FOODGRAINS

1413.  SHRI PRATAPRAO JADHAV: SHRI JASVANTSINH SUMANBHAI BHABHOR:

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

- (a) whether  there  is  a  difference  between  Minimum  Support  Price  and  Market  Price  of foodgrains;
- (b) if so, the details thereof;
- (c) whether it is a fact that the farmers have not been benefited from the existing market price of foodgrains and the price rise; and
- (d) the reaction of the Government thereto and the corrective steps taken by the Government in this regard?

## 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) to (d): The  market  prices  of  all  commodities  including  foodgrains  are  determined  by  the market forces of supply and demand.

Minimum  Support  Price  (MSP)  is  fixed  by  the  Government  for  22  crops  namely  Paddy, Jowar,  Bajra,  Maize,  Ragi,  Arhar  (Tur),  Moong,  Urad,  Cotton,  Groundnut,  Sunflower,  Soyabean, Sesamum, Nigerseed, Wheat, Barley, Gram, Lentil (Masur), Rapeseed/Mustard, Safflower, Copra, Jute  and  Fair  Remunerative  Price  (FRP)  for  Sugarcane  based  on  the  recommendation  of Commission for  Agricultural  Costs  and  Prices  (CACP)  and  consultation  with  the  States/UTs  and Central Ministries/Departments.

Government ensures remunerative price to the growers by offering to procure their produce at MSP fixed by the Government. However, farmers are free to sell it to Government agencies at MSP or in the open market at market prices as is advantageous to them.

The Government has taken several steps to ensure that farmers get adequate price for their produce, which, inter alia, includes advising the States/UTs to amend their respective State APMC Acts,  on  the  lines  of  Model  Act,  2003.    The  Model  Act  provides  for  direct  marketing,  contract farming,  farmers/consumer  markets,  setting  up  of  markets  in  private  and  cooperative  sector, e-trading  etc.    In  addition  Government  is  also  implementing  Marketing  Research  and  Information Network (MRIN) with the objective to collect and disseminate prices and arrival data for the benefit of farmers and other stakeholders to facilitate the farmers in taking better production and marketing decisions to get more remunerative prices for their produce.

The Government has also approved the Central Sector Scheme for promotion of National Agriculture Market through Agri-Tech Infrastructure Fund (A-ITF).  The Scheme provides for a panIndia electronic training portal which seeks to network the existing Agricultural Produce Marketing Committees  (APMC)  and  other  market  yards  to  create  a  unified  national  market  for  agricultural commodities.

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