Question : Role of MSP in Doubling Farmers Income

(b) whether the Union Government is aware of the fact that the cost incurred for farming and agriculture production has doubled in the last seven years due to the increase in the remuneration of farm workers, escalation of fuel/fertilizer/farm equipment prices which does not commensurate with the net income generated by farmers;

(c) if so, the details thereof and the effective steps taken by the Government to provide adequate support to farmers and thereby double their income;

(d) the targets fixed by States for MSP allocation for the year 2020 and the achievements made against the target till date;

(e) whether the Government has any legislation to procure farm products at MSP, if the prices of agricultural products purchased by the States are below the MSP;

(f) if so, the details thereof and if not, the reasons therefor;

(g) the steps taken by the Government to increase the MSP provided and bring all agricultural produce under the ambit of MSP; and

(h) whether the Government proposes to introduce “Bhavantar Price” system throughout the country for compensating farmers for the difference between MSP and actual market price, if so, the details thereof?

MINISTER OF AGRICULTURE AND FARMERS WELFARE
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(a) to (c): The Government constituted an Inter-ministerial Committee in April, 2016 to examine issues relating to “Doubling of Farmers Income” and recommend strategies to achieve the same, The Committee submitted its final Report to the Government in September, 2018 containing the strategy for doubling of farmers’ income by the year 2022. After acceptance of the DFI Committee recommendations, the Government has constituted an ‘Empowered Body’ to review and monitor the progress.
The Government has adopted several developmental programmes, schemes, reforms and policies that focus on higher incomes for the farmers. All these policies & programmes are being supported by higher budgetary allocations, non-budgetary financial resources by way of creating Corpus Funds like Micro Irrigation Fund and Agri-marketing scheme to strengthen eNAM and GrAMs, as also in the Ministry of Fisheries, Animal Husbandry and Dairying to promote dairy and fishery sectors. There have been several reforms to unleash the potential and these include Market Reforms like Model APLMC (Promotion & Facilitation) Act, 2017; Establishment of Gramin Agriculture Markets (GrAMs); Agri-Export Policy, 2018; The Farmers Produce Trade and Commerce (Promotion & Facilitation) Act, 2020; The Farmers (Empowerment & Protection) Agreement on Price Assurance and Farm Services Act. 2020; Amendments to Essential Commodities Act, 1955; Promotion of 10,000 FPOs with necessary financial support under Atma Nirbhar Package (Agriculture)and Supplementary Income transfers under PM-KISAN; Pradhan Mantri Fasal Bima Yojna (PMFBY); Pradhan Mantri Krishi Sinchai Yojana (PMKSY); Increase in Minimum Support Price (MSPs) for all Kharif& Rabi Crops ensuring a minimum of 50 percent of profit margin on the cost of production; Har Med Par Ped; Bee-Keeping; Rashtriya Gokul Mission; Blue Revolution; Interest Subvention Scheme; Kisan Credit Card (KCC) that now offers production loan to even dairy & fishery farmers besides agricultural crops etc. In the Budget Announcement 2021-22, allocation to Micro Irrigation Fund has been doubled to Rs 10,000 crore and Institutional Credit has been increased to Rs 16.50 lakh crore. A list of various interventions and schemes launched for the benefit of farmers is at Annexure I.
(d): Before the onset of each marketing season, Department of Food and Public Distribution, Government of India holds a consultative meeting with officials of Food Corporation of India (FCI), State Governments and others to make assessment of availability of wheat and paddy/rice for procurement at MSP based on the prospects of production and market situation. The procurement estimates of the State Government/UTs and the procurement achievement made against the estimates for wheat and rice (for Marketing Season 2019-20 and 2020-21) is at Annexure II.
(e) & (f): The Government of India announces Minimum Support Prices (MSP) for 22 major agricultural commodities of Fair Average Quality (FAQ) each year in both the Crop seasons after taking into account the recommendations of the Commission for Agricultural Coasts and Prices (CACP). Government also extends remunerative price to farmers through its various interventions schemes.
(g): MSPs are fixed for those crops which are widely grown, have large area under cultivation, items of mass consumption and non-perishable in nature with fairly long shelf life and necessary for maintaining food security. Government announces Minimum Support Prices (MSPs) for 22 mandated crops based on the recommendations of the Commission for Agricultural Costs & Prices (CACP) after considering the views of concerned State Governments and Central Ministries/Departments. The 22 mandated crops include 14 Kharif crops viz. paddy, jowar, bajra, maize, ragi, arhar, moong, urad, groundnut, soybean (yellow), sunflower seed, sesamum, nigerseed, cotton and 6 Rabi crops viz. wheat, barley, gram, masur (lentil), rapeseed and mustard, safflower and two commercial crops viz. jute and copra. In addition to that, MSP for toria and de-husked coconut are also fixed on the basis of MSPs of rapeseed & mustard and copra respectively.
(h): There is no scheme by the name of “Bhavantar Price” under implementation by the Central Government.