Question : Extension of MSP to all Crops

(a) whether the Government has extended the market-distorting Minimum Support Price (MSP) programme to all crops;

(b) if so, whether in the absence of effective procurement infrastructure and market reforms, it didn’t make much a difference;

(c) if so, the details thereof;

(d) whether it is a fact that most agricultural commodities are selling 10 to 30 per cent below their floor prices or MSPs, if so, the facts in this regard;

(e) whether the Government has conducted any study in this regard, if so, the findings thereof; and

(f) the action taken by the Union Government on the findings of the aforesaid study and whether there is any special suggestion for Bundelkhand, if so, the details thereof?

MINISTER OF AGRICULTURE AND FARMERS WELFARE

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(a): Government fixes Minimum Support Prices (MSPs) of 22 mandated crops and fair and remunerative prices (FRP) for Sugarcane on the basis of recommendations of Commission for Agricultural Costs and Prices (CACP), after considering the views of State Governments and Central Ministries/Departments concerned and other relevant factors. In addition, MSP for Toria and De-Husked coconut is also fixed on the basis of MSPs of Rapeseed/Mustard and Copra respectively. These major agricultural crops account for around 99 per cent of the agricultural output (excluding horticulture).

(b)&(c): As per the existing arrangements, procurement is made of the crops for which MSPs are announced through Central and State agencies. In so far as cereals/nutri cereals are
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concerned, they are procured through Food Corporation of India (FCI) and decentralized procurement system mainly for distribution under the public distribution system (PDS), for welfare schemes and buffer stocking for food security. Government also implements Price Support Scheme (PSS) under the Umbrella Scheme “Pradhan Mantri Annadata Aay SanraksHan Abhiyan (PM-AASHA)” for procurement of oilseeds and pulses. Cotton is procured by Cotton Corporation of India.
To strengthen the market infrastructure government is implementing various programs including e-National Agriculture Market (e-NAM), enacting the Model Agricultural Produce and Livestock Marketing (Promotion & Facilitation) Act, 2017 and promoting Farmer Producer Organizations (FPOs). The Government is working on market architecture so as to ensure that farmers get remunerative prices on their produce. These include setting up of Gramin Agricultural Markets (GrAMs) with a view to promote 22,000 number of retail markets in close proximity of farm gate; competitive and transparent wholesale trade at APMC through e-NAM; and a robust and pro-farmer export policy.
(d): The prices of agricultural produce are determined by supply and demand conditions in the market on a day-to-day basis. The prices of agricultural produce tend to fall immediately after harvest due to increase in market arrival of new crops in a lumpy manner. The wholesale prices of major agricultural commodities are given below:
(in Rs. per quintal)
Crops/
Commodity MSP
(2018-19) Wholesale Prices
Apr-19 May-19
Paddy 1750 1780 1793
Bajra 1950 2171 2207
Barley 1440 1745 1795
Gram 4620 4679 4796
Jowar 2430 2637 2625
Maize 1700 1943 1973
Ragi 2897 2715 2690
Wheat 1840 2108 2120
Arhar Whole 5675 5108 5557
Masur Whole 4475 4768 4902
Moong Whole 6975 5952 6211
Urad Whole 5600 5230 5441
Groundnut 4890 5035 5132
Copra 7511 11148 10583
Safflower/ Kardiseed 4945 3757 4047
Mustard Seed 4200 3978 4073
Nigerseed 5877 4732 4700
Sesamum Seed 6249 9883 9782
Soyabean 3399 3675 3742
Sunflower Seed 5388 3705 3567
Cotton/Kapas 5150 5785 5839
Source: Directorate of Economics & Statistics
(e)&(f): There is no study conducted in this regard by the government.
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