Question : Support Price for Agricultural Produce


(a) whether the Government is aware that the Support Price fixed by the Government is lower than the open market sales price, if so, the details thereof;

(b) whether it is also true that farmers are getting higher price than the support price fixed by the Government; and

(c) if so, whether the Government is taking any corrective measures to increase the support price for various crops, if so, the details thereof and if not, the reasons therefor?

Answer given by the minister


MINISTER OF AGRICULTURE AND FARMERS WELFARE

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(a) & (b): The prices of agricultural produce are determined by supply and demand conditions in the market on a day-to-day basis. Wholesale prices of agricultural produce tend to fall immediately after harvest due to increase in market arrival of new crops. The minimum support price (MSP) and wholesale prices of major agricultural commodities are given below:

(Rs per quintal)
Crops/ MSP (2018-19) Wholesale Prices
May-19 June-19
Paddy 1750 1793 1787
Bajra 1950 2207 2149
Barley 1440 1795 1816
Gram 4620 4796 4676
Jowar 2430 2625 2678
Maize 1700 1973 1977
Ragi 2897 2690 2731


Contdā€¦.2/-


-2-


Wheat 1840 2120 2116
Arhar Whole 5675 5557 5521
Masur Whole 4475 4902 4932
Moong Whole 6975 6211 6353
Urad Whole 5600 5441 5397
Groundnut 4890 5132 5386
Copra 7511 10583 10258
Safflower/ Kardiseed 4945 4047 4332
Mustard Seed 4200 4073 4071
Nigerseed 5877 4700 4648
Sesamum Seed 6249 9782 9922
Soyabean 3399 3742 3701
Sunflower Seed 5388 3567 3508
Cotton/Kapas 5150 5839 5836
Jute 2030 4336 4289
Source: Directorate of Economics & Statistics

(c): The Union Budget for 2018-19 had announced the pre-determined principle to keep MSPs at a level of at least 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 and percent return over cost since 2017-18 to 2019-20 is given in Annexure.

As and when wholesale prices of MSP crops fall below the MSP, State Governments can put in place procurement operations or Price Deficiency Payment Scheme (PDPS) for pulses, oilseeds and cotton which are not covered under Public Distribution System/welfare schemes.




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