Question : MSP for Agricultural Produce

(a) whether the Government fixes the Minimum Support Price (MSP) for all agricultural produce every year;

(b) if so, the details for the last three years and the current year;

(c) whether it is a fact that MSP for various agricultural produce has increased during the last three years but MSP for some agricultural produce has not been increased;

(d) if so, the details thereof and the reasons therefor; and

(e) whether the Government is considering to review the price fixation policy to provide benefit to the farmers as well as the consumers and if so, the details thereof?

MINISTER OF STATE IN THE MINISTRY OF AGRICULTURE AND FARMERS WELFARE

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(a) to (d): Government fixes Minimum Support Price (MSP) for twenty two (22) major crops and Fair and Remunerative Price (FRP) for sugarcane as recommended by Commission for Agricultural Costs and Prices (CACP). Twenty two crops covered under MSP are Paddy, Jowar, Bajra, Maize, Ragi, Arhar, Moong, Urad, Groundnut-in-shell, Soyabean, Sunflower, Sesamum, Nigerseed, Cotton, Wheat, Barley, Gram, Masur (Lentil), Rapeseed/Mustardseed, Safflower, Jute and Copra.

In addition, MSP for Toria and De-Husked coconut is fixed on the basis of MSPs of Rapeseed/Mustardseed and Copra respectively.

The MSPs fixed by Government for last three years and current year i.e. from 2013-14 to 2016-17 are given at Annexure.

(e): There is no proposal to change the formula for determining MSPs at present. Government fixes the Minimum Support Prices (MSPs) of various crops on the recommendations of the CACP, the views of concerned State Governments and Central Ministries/Departments. While formulating its recommendations on price policy, the CACP considers, interalia, a number of important factors which include cost of production, trends in market prices, demand and supply situation, effect on general price level, effect on cost of living etc.