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GOVERNMENT OF INDIA
MINISTRY OF AGRICULTURE AND FARMERS WELFARE
LOK SABHA
STARRED QUESTION NO: 311
ANSWERED ON:  10.08.2021
Return over Cost of Cultivation
Sajda Ahmed
Will the Minister of



AGRICULTURE AND FARMERS WELFARE be pleased to state:-


(a) the policy adopted by the Government aimed at a return over the cost of cultivation;

(b) whether the Government has assessed the impact of the hike in Minimum Support Price (MSP) among the distressed farmers; and

(c) if so, the details thereof?


ANSWER
MINISTER OF AGRICULTURE AND FARMERS WELFARE
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(a) to (c): A statement is laid on the Table of the House.




STATEMENT REFERRED TO IN REPLY TO PARTS (a) TO (c) OF LOK SABHA STARRED QUESTION NO. 311 DUE FOR REPLY ON 10TH AUGUST, 2021.

(a): The Government in its Union Budget for 2018-19 had announced the pre-determined principle to keep Minimum Support Price (MSP) at a level of one and half times of the cost of production. Accordingly, Government has increased the MSP for all mandated Kharif, Rabi and other commercial crops with a return of atleast 50 per cent over all India weighted average cost of production from the agricultural year 2018-19 onwards. In addition to cost of production, Commission for Agricultural Cost & Prices (CACP) also considers various other factors while recommending MSP which include overall demand-supply situations of various crops in domestic and world markets, domestic and international prices, inter-crop price parity, terms of trade between agriculture and non-agriculture sector among others.

(b) & (c): Enhanced percentage return over the cost of production is bound to have positive impact on increase in the farmers’ income. Apart from this, several steps have been taken by the Ministry for the benefits of farmers by way of providing schemes and interventions for improving the income of farmers, and the details are given in Annex.










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