Question : MSP OF FOODGRAINS



(a) the increase in the Minimum Support Price (MSP) for rice and wheat between 2006-07 and 2011-12;

(b) the measures being taken by the Government to bridge the widening gap between MSP and the issue price;

(c) whether the increase in MSP has actually reached the small and marginal farmers; and

(d) if not, the efforts being taken by the Government to benefit the farmers?

Answer given by the minister


MINISTER OF STATE IN THE MINISTRY OF AGRICULTURE AND FOOD PROCESSING INDUSTRIES (SHRI TARIQ ANWAR)

(a): Between 2006-07 and 2011-12, the Minimum Support Price (MSP) of paddy (rice) was increased by Rs. 500/- per quintal and of wheat by Rs. 535/- per quintal.

(b): Central Issue Price (CIP) of foodgrains under Targeted Public Distribution Scheme (TPDS) have not been increased since 2002 despite increase in MSP to ensure availability of foodgrains at affordable prices to TPDS beneficiaries.

(c) & (d): To ensure that the farmers receive MSP for their produce, Food Corporation of India (FCI) in consultation with State Governments operates sufficient number of purchase centres. The State Governments have been instructed to engage Self Help Groups (SHGs)/Societies etc. who can have better reach in the procurement areas leading to higher levels of procurement. To ensure that the benefit of MSP reaches the farmers, the field units of FCI have been directed to make payments through account payee cheques/electronic mode, wherever possible. In order to spread awareness regarding MSP operations, wide publicity is given through pamphlets, banners, sign boards and advertisements through print and electronic media regarding MSP, quality specifications, purchase system, etc.