(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 Minimum Support Prices are not fixed;
(c) whether the farmers are facing a lot of problems in selling their crops at MSP;and
(d) if so, the reasons therefor and the reaction of the Government thereto?
MINISTER OF STATE IN THE MINISTRY OF AGRICULTURE (SHRI SHARAD PAWAR)
(a) to (d): A statement is laid on the Table of the House.
STATEMENT REFERRED TO IN REPLY TO PARTS (a) TO (d) OF LOK SABHA
STARRED QUESTION NO. 28 DUE FOR REPLY ON 13TH AUGUST, 2007.
(a) & (b): 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, Sunflower, 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.
(c) & (d): 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.