Lok Sabha Question No. 2916 (UNSTARRED), answered on 2016-03-15
Subject: MSP for Agricultural Produce
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: GOPAL CHINAYYA SHETTY, HEMANT TUKARAM GODSE, MAULANA BADRUDDIN AJMAL

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

## LOK  SABHA UNSTARRED QUESTION NO.2916

TO BE ANSWERED ON THE  15 TH  MARCH, 2016

## MSP FOR AGRICULTURAL PRODUCE

2916.  SHRI GOPAL SHETTY:

SHRI GODSE HEMANT TUKARAM:

SHRI BADRUDDIN AJMAL:

Will the Minister of AGRICULTURE AND FARMERS WELFARE   ‡ãðŠãäÓã एवं कसान कयाण ½ãâ¨ããè

be pleased to state:

- (a) the details of MSP for various kharif and rabi crops, cost of production and profit margins over cost of production of all principal crops during the last three years and the current year, crop/produce-wise;
- (b) the  latest  data  of  projected  cost  of  production  of  all  the  principal  crops  in  the current year and the next year;
- (c) the  percentage  of  increase  made  in  the  MSP  during  the  last  three  years, yearwise;
- (d) whether  it  is  true  that  due  to  hike  in  the  prices  of  various  fertilizers  and  other agricultural inputs farmers are not getting remunerative prices for their produce, if so, the  corrective  steps  taken  by  the  Government  in  this  regard  to  provide  relief  to  the farmers;
- (e) whether  the  Government proposes  to  bring  objectivity  and  transparency  in  the procedure to compute the MSP for crops, if so, the details thereof; and
- (f) whether the Government proposes to announce the MSP for various agricultural produce including paddy for the current year, if so, the details thereof, produce-wise?

## ANSWER

MINISTER OF  STATE IN THE  MINISTRY OF  AGRICULTURE AND  FARMERS  WELFARE

‡ãðŠãäÓã एवं कसान कयाण ½ãâ¨ããÊã¾ã ½ãñâ Àã·¾ã ½ãâ¨ããè ( SHRI MOHANBHAI KUNDARIYA )

- (a) to (c): The  details  of  Minimum  Support  Prices  (MSPs),  estimated  cost  of production (A2+FL) and profit margins over cost of production  for major kharif and rabi

crops    for  the  current  year  and  last  three  years  i.e.  from  2012-13  to  2015-16  are  at Annexure I.

Contd…2/-

-2-

The estimated cost of production of principal crops is available upto 2015-16.

Percentage increase in MSP during the last three  years i.e.  2012-13,  2013-14 and 2014-15 are at Annexure II.

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

The objective of the Government's price policy is to ensure remunerative prices to farmers by offering to procure their produce at MSP. However, farmers are free to sell their  produce  to  Government  procurement  agencies  or  in  the  open  market  as  is advantageous to them.

Government has taken several initiatives to increase  production and productivity of farmers which, inter alia, includes Soil Health Card (SHC) scheme; promotion of use of  Neem  Coated  Urea;  Paramparagat  Krishi  Vikas  Yojana  (PKVY);  Pradhan  Mantri Krishi  Sinchai  Yojana  (PMKSY);  National  Food  Security  Mission  (NFSM);  Mission  for Integrated Development of Horticulture (MIDH); National Mission on Oilseeds & Oilpalm (NMOOP); National  Mission  for  Sustainable  Agriculture  (NMSA);  National  Mission  on Agricultural  Extension  &  Technology  (NMAET);  National  Crop  Insurance  Programme (NCIP);  Unified  National  Agriculture  Markets;  Kisan  Credit  Card  (KCC)  and  Rashtriya Krishi Vikas Yojana (RKVY) etc.

(f): Government  has  announced  the  Minimum  Support  Prices  (MSPs)  for  various agricultural produce including paddy for 2015-16 season as mentioned in Annexure I.

## ANNEXURE-I

## Statement referred to in reply to parts (a) to (c) of Unstarred Question No.2916 for answer on 15.03.2016 regarding 'MSP for Agricultural Produce'

## Minimum Support Prices and Estimated Cost of Production of Major Crops

(Rs.per quintal)

| Commodity          | Variety       | 2012-13   | 2012-13   | 2013-14   | 2013-14   | 2014-15   | 2014-15   | 2015-16   | 2015-16   |
|--------------------|---------------|-----------|-----------|-----------|-----------|-----------|-----------|-----------|-----------|
| Commodity          | Variety       | MSP       | A2+FL     | MSP       | A2+FL     | MSP       | A2+FL     | MSP       | A2+FL     |
| Kharif Crops       |               |           |           |           |           |           |           |           |           |
| Paddy              |               | 1250      | 814       | 1310      | 961       | 1360      | 978       | 1410      | 1020      |
| Maize              |               | 1175      | 814       | 1310      | 860       | 1310      | 914       | 1325      | 941       |
| Arhar (Tur)        |               | 3850      | 2765      | 4300      | 3090      | 4350      | 3105      | 4425^     | 3237      |
| Moong              |               | 4400      | 3430      | 4500      | 3775      | 4600      | 3890      | 4650      | 3993      |
| Cotton             | Medium Staple | 3600      | 1970      | 3700      | 2485      | 3750      | 2510      | 3800      | 2753      |
|                    | Long Staple   | 3900      | 1970      | 4000      | 2485      | 4050      | 2510      | 4100      | 2753      |
| Groundnut in shell |               | 3700      | 2873      | 4000      | 2720      | 4000      | 3232      | 4030      | 3314      |
| Soyabean           | Black         | 2200      | 1726      | 2500      | 1692      | 2500      | 1729      | -         | 1770      |
|                    | Yellow        | 2240      | 1726      | 2560      | 1692      | 2560      | 1729      | 2600$     | 1770      |
| Rabi Crops         |               |           |           |           |           |           |           |           |           |
| Wheat              |               | 1350      | 687       | 1400      | 679       | 1450      | 744       | 1525      | 785       |
| Gram               |               | 3000      | 1696      | 3100      | 1786      | 3175      | 1902      | 3425*     | 2124      |
| Masur (Lentil)     |               | 2900      | 1926      | 2950      | 1799      | 3075      | 1866      | 3325*     | 2015      |
| Rapeseed/Mustard   |               | 3000      | 1260      | 3050      | 1307      | 3100      | 1504      | 3350      | 1702      |

$Single MSP of Soyabean has been fixed irrespective of variety

A2+FL= All paid out costs+ imputed value of family labour.

## ANNEXURE-I I

## Statement  referred  to  in  reply  to  parts  (a)  to  (c)  of  Unstarred  Question No.2916 for answer on 15.03.2016 regarding 'MSP for Agricultural Produce'

## Percentage increase in MSP in the last three years of Major Crops

| Sl. No.   | Commodity          | Variety       | 2012-13   | 2013-14   | 2014-15   |
|-----------|--------------------|---------------|-----------|-----------|-----------|
|           | Kharif Crops       |               |           |           |           |
| 1         | Paddy              |               | 15.7      | 4.8       | 3.8       |
| 2         | Maize              |               | 19.9      | 11.5      | 0.0       |
| 3         | Arhar(Tur)         |               | 20.3      | 11.7      | 1.2       |
| 4         | Moong              |               | 25.7      | 2.3       | 2.2       |
| 5         | Cotton             | Medium Staple | 28.6      | 2.8       | 1.4       |
|           |                    | Long Staple   | 18.2      | 2.6       | 1.3       |
| 6         | Groundnut in Shell |               | 37.0      | 8.1       | 0.0       |
| 7         | Soyabeen           | Black         | 33.3      | 13.6      | 0.0       |
|           |                    | Yellow        | 32.5      | 14.3      | 0.0       |
|           | Rabi Crops         |               |           |           |           |
| 8         | Wheat              |               | 5.1       | 3.7       | 3.6       |
| 9         | Gram               |               | 7.1       | 3.3       | 2.4       |
| 10        | Masur (Lentil)     |               | 3.6       | 1.7       | 4.2       |
| 11        | Rapeseed/Mustard   |               | 20.0      | 1.7       | 1.6       |

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