MINISTER OF STATE IN THE MINISTRY OF AGRICULTURE AND FOOD PROCESSING INDUSTRIES (SHRI TARIQ ANWAR)
(a) & (b): The Government has constituted a Committee under the Chairmanship of
Director, National Centre for Agricultural Economics & Policy Research in the month of
April, 2013, to examine the methodological issues in fixing Minimum Support Prices.
The terms of reference of the Committee are given as under:-
To examine the existing mandate of the Commission for Agricultural Costs and
Prices and suggest whether – by way of a measure of response to the rapidly
changing external environment arising in the wake of liberalization,
privatization and globalization – there is need to reposition the Commission in
terms of its mandate and remit.
To examine the existing cost concepts for the purpose of fixing minimum
support prices and suggest various factors including cost of transportation,
marketing, processing, storage etc. to determine MSP. Besides, the Committee
may also analyse the appropriateness of existing methods followed in imputing
the value (i) family labour; (ii) rental value of land; (iii) interest on capital; (iv)
depreciation on fixed items such as tractors, bullocks etc. and recommend
measures for improvement so as to make them more realistic.
To examine the existing structure of tariff, taxes, credit, market etc. and to
suggest various measures to make it most competitive and remunerative to the
farmers in the wake of trade liberalization and globalization and also to
encourage diversified agricultural growth.
To examine any other related and relevant matters that are important for
improving the system.
(c) & (d): No specific date is fixed for the submission of the report. However, the
Committee was requested to submit the reports as early as possible.
Since, the report is not yet submitted, the question of difficulties in
implementation does not arise.
(e) & (f): Before start of each Rabi and Kharif marketing session, the government
convenes a meeting of State Food Secretaries, Food Corporation of India and other
stake holders to prepare a detailed action plan for making arrangements of
procurement on MSP and also to discuss details of procurement centers. State
Governments are encouraged to adopt Decentralized Procurement System (DCP) of
procurement so as to maximize procurement and increase the reach of MSP
operations. To spread awareness about MSP operations, wide publicity is given
through the pamphlets, banners, sign boards, advertisement and also through print
and electronic media. All the produce brought to the procurement centers by farmers
are procured by government agencies. Progress of procurement is monitored
periodically and remedial steps are taken to maximize the procurement.
