MSP for paddy

Agriculture and Farmers Welfare

GOVERNMENT OF INDIA MINISTRY OF AGRICULTURE AND FARMERS WELFARE DEPARTMENT OF AGRICULTURE, COOPERATION AND FARMERS WELFARE RAJYA SABHA UNSTARRED QUESTION NO.688 TO BE ANSWERED ON 18/09/2020 MSP FOR PADDY 688. Dr. Amar Patnaik: Will the Minister of AGRICULTURE AND FARMERS WELFARE be pleased to state: (a) whether the factors to decide upon the cost of production mentioned in the Swaminathan Report are taken in consideration to ensure the 50 per cent return on MSP for paddy; and (b) if so, the details thereof; and (c) if not, the reasons therefor? ANSWER MINISTER OF AGRICULTURE AND FARMERS WELFARE ( SHRI NARENDRA SINGH TOMAR) (a) to (c): The present Minimum Support Price (MSP) for paddy for ensuring 50 percent return on paddy is in accordance with Swaminathan Report. Following the Swaminathan Committee recommendations, in the Union Budget of 2018-19, Government of India has announced the predetermined principle of fixing MSP at 1.5 times of the cost of production. The present MSP for paddy has been fixed in accordance to the same principle. MSP takes into account all paid out costs such as those incurred on account of hired human labour, bullock labour/machine labour, rent paid for leased in land, expenses incurred in cash and kind on the use of material inputs like seeds, fertilizers, manures, irrigation charges, depreciation on implements and farm buildings, interest on working capital, diesel/electricity for operation of pump sets etc., miscellaneous expenses and imputed value of family labour. The cost of production considered is comprehensive and based on the methodology recommended by Expert Committees from time to time.