Question : MINIMUM SUPPORT PRICES



(a) the names of agricultural produces for which the Government fixes Minimum Support Prices (MSP);

(b) the steps being taken by the Government to ensure stability in the prices of the agricultural produces for which MSP are not fixed;

(c) whether the farmers are facing problems in selling their crops at MSP;

(d) if so, the reasons therefor and the reaction of the Government thereto; and

(e) the present status of remuneration to farmers on each crop?

Answer given by the minister


MINISTER OF STATE IN THE MINISTRY OF AGRICULTURE (SHRI KANTI LAL BHURIA)

(a) to (e): The Government fixes Minimum Support Prices (MSPs) for 25 crops namely Paddy, Jowar, Bajra, Maize, Ragi, Arhar (Tur), Moong, Urad, Cotton, Groundnut-in-shell, Sunflower seed, Soyabean, Sesamum, Nigerseed, Wheat, Barley, Gram, Masur (Lentil), Rapeseed/Mustard, Safflower, Toria, Copra, Jute and Tobacco and Statutory Minimum Price (SMP) for Sugarcane.

In addition, Government implements Market Intervention Scheme (MIS) on the request of a State/UT Government for procurement of agricultural and horticultural commodities not covered under the Price Support Scheme. The MIS is implemented in order to protect the growers of these commodities from making distress sale in the event of bumper crop when the prices tend to fall below the economic level/cost of production. Losses, if any, incurred by the procuring agencies are shared by the Central Government and the concerned State Government on 50:50 basis (75:25 in case of North-Eastern States). However, the amount of loss to be shared between Central Government and the concerned State Government is restricted to 25% of value of procurement. Profit, if any, earned by the procuring agencies is retained by them.

Appropriate procurement arrangements are made by the designated agencies to buy agricultural produce at MSP in different States. Further, with the amendment of the Agricultural Produce Marketing Committee (APMC) Act, the farmers now have more options to sell their produce to the prospective buyers. If the market price is more than the MSP fixed by the Government, farmers are free to sell their produce in the open market.

A statement indicating the MSPs announced in recent years is enclosed.