Question : Increase in MSP for Kharif Crops

(a) whether it is a fact that cost of production of agriculture produce has increased manifold and if so, whether to give relief to farmers, the Government has increased MSP for more than 14 kharif crops;

(b) if so, the details thereof and percentage increase in MSP for these produce;

(c) the number of agricultural produce left whose MSP price have not been increased;

(d) the extent to which this step of the Government is likely to give relief to farmers and impose a burden on consumers;

(e) the further steps taken or being taken by the Ministry to encourage farmers to increase agricultural production especially in the drought situation;

(f) whether the Government has made or is aware of any study to evaluate the impact of the MSP on rice cultivation in India; and

(g) whether large parts of North India are facing excessive depletion of water affecting wheat and rice cultivation and if so, the steps taken by the Government to reserve water for cultivation thereof?

MINISTER OF AGRICULTURE AND FARMERS WELFARE

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(a) & (b): On the recommendations of Commission for Agricultural Costs & Prices (CACP), Minimum Support Prices (MSPs) for 22 mandated crops are announced by the Government which includes 14 kharif crops.

CACP uses all-India weighted average cost of production while making its recommendations. This cost of production is all comprehensive cost as projected by the CACP after factoring inflation of agricultural inputs.
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The Union Budget for 2018-19 had announced the pre-determined principle to keep minimum support prices (MSP) at a level of atleast one and half times of the cost of production. Accordingly, Government had increased MSPs for all mandated crops with a return of at least 50 percent over all India weighted average cost of production for the season 2018-19. Government has recently increased the MSPs for all kharif crops for 2019-20 season in line with the principle of providing at least 50 percent return over all India weighted average cost of production. Details of MSP, cost, return over cost and percent increase for 2018-19 and 2019-20 are given in Annexure I.

(c): These mandated MSP crops cover approximately 99 per cent of the total agricultural output (does not include horticulture) in the country. Government implements on the request of State/UT Governments concerned, Market Intervention Scheme (MIS) for horticultural crops which are perishable in nature and some agricultural crops which are not covered under the MSP.

(d): Government generally increases MSPs of all mandated crops over their previous year’s MSPs. Higher MSP will ensure higher returns/income to the farmers.Higher MSP does not necessarily imply a proportionate increase in the market price. Price depends on, among others, demand and supply conditions and even as MSPs have been increased inflation in terms of these Consumer Price Index (CPI) have remained low and benign.

(e): Government has taken several initiatives to reduce the cost of production, raise the yield levels and provide remunerative price to farmers which include Soil Health Card, Pradhan Mantri Krishi Sinchai Yojana(PMKSY), neem-coated urea(NCU), bio pesticides for promoting integrated pest management, production and supply of quality seeds, promoting water saving devices like sprinkler sets, drip irrigation system etc.

In addition, Progress of Monsoon and Area coverage etc. are monitored weekly through Crop and Weather Watch Group meetings as well as video conferencing, advising the States to take steps according to the prevailing situation. District Agriculture Contingency Plans for 648 districts have been prepared by Central Research Institute for Dry land Agriculture (CRIDA) to mitigate the situation in drought affected areas. There is a provision of distribution of seeds of contingency crops such as pulses, millets, oilseeds, which are drought hardy and survive with minimal available water in rain fed/ drought affected areas under National Food Security Mission (NFSM).

(f) & (g): The NITI Aayog has conducted a study entitled “Efficacy of minimum support prices on farmers”. The study covered 14 States, 36 Districts, 72 Blocks, 144 Villages and 1440 Households. The study is based on both the primary and secondary data. The study reference period was from the year 2007-08 to 2010-11. The study has found that MSP declared by the Government has encouraged 78 % of the farmers covered under the study for adopting improved methods of farming such as high yielding varieties of seeds, organic manure, chemical fertilizer, pesticides and improved methods of harvesting etc. due to remunerative price.
Ground water levels in various parts of the country including North India are declining because of continuous withdrawal due to increased demand of fresh water for various uses, vagaries of rainfall, increased population, industrialization & urbanization etc.

Government has taken several steps, which among others, include Crop Diversification Programme (CDP) in original green revolution states viz. Punjab, Haryana and Western Uttar Pradesh as a sub scheme of Rashtriya Krishi Vikas Yojana (RKVY) since 2013-14 to divert the area of water guzzling paddy crop to alternate crops like pulses, oilseeds, coarse/nutri-cereals, cotton and agro forestry.