Question : GROUNDNUT CULTIVATION

MINISTER OF STATE IN THE MINISTRY OF AGRICULTURE AND MINISTER OF STATE IN THE MINISTRY OF CONSUMER AFFAIRS, FOOD AND PUBLIC DISTRIBUTION (PROF. K.V. THOMAS)

(a): As per 4th Advance Estimates for 2009-10, the details of estimated area under groundnut cultivation in the country and in major groundnut producing States are as under:

Area under groundnut cultivation during 2009-10 (000` hectares)

State	Area
Andhra Pradesh	1301.0
Gujarat	1826.0
Karnataka	799.0
Madhya Pradesh	188.1
Maharashtra	318.0
Rajasthan	326.0
Tamilnadu	414.2
All India	5470.0

(b) & (c): In order to provide remunerative price to farmers for their produce and to encourage higher investment and production, Government of India announces Minimum Support Prices (MSPs) for certain agricultural commodities including ground nut in shell on the recommendations of the Commission for Agricultural Costs and Prices (CACP). The Government of India has substantially increased MSP of ground nut in shell from Rs.1550 per quintal during 2007-08 to Rs.2100 per quintal during 2008-09. The MSP for groundnut in shell for 2010-11 has been further increased by Rs. 200 per quintal and fixed at Rs. 2300 per quintal as compared to the previous year.

The designated central nodal agencies intervene in the market for undertaking procurement operations with the objective that the market prices do not fall below the MSP fixed by the Government.