Centre has doubled MSP for crops, procurement has shot up: Shivraj Singh Chouhan
The minimum support prices offered by the Centre to farmers for various crops have doubled and procurement volumes have shot up under the Narendra Modi-led government, Union Minister for Agriculture & Farmers Welfare Shivraj Singh Chouhan told the Parliament on Tuesday.
"Under the previous government, only 6 lakh metric tonnes of pulses were procured in 10 years. Under the current government, this figure has soared to 1.82 crore metric tonnes,” the minister said during Question Hour in the Lok Sabha.
Chouhan also informed the House that the PM-AASHA scheme has been launched to procure pulses and oilseeds like tur, masoor, and urad at 100 per cent MSP. Measures are in place to ensure that middlemen don’t exploit farmers, and that MSP rates are delivered effectively, he added.
He cited data showing that MSP rates have significantly increased, In the case of paddy, the procurement price has gone up from Rs 1,310 (2013–14) to Rs 2,369, for bajra, from Rs 1,250 to Rs 2,775, for ragi, from Rs 1,500 to Rs 4,886, for maize from Rs 1,310 to Rs 2,400, for tur from Rs 4,300 to Rs 8,000, for moong, from Rs 4,500 to Rs 8,768, for urad, from Rs 4,300 to Rs 7,800, and for groundnut, from Rs 4,000 to Rs 7,263.
In the case of sunflower, the price has gone up from Rs 3,700 to Rs 7,721, for soybean from Rs 2,560 to Rs 5,328, for sesame from Rs 4,500 to Rs 9,846, for niger seed, from Rs 3,500 to Rs 9,537, and for cotton, from Rs 3,700 to Rs 7,710, the minister added.
Chouhan emphasised that to raise farmers’ income, the government decided to ensure a minimum of 50 per cent profit margin over cost in MSP. Large-scale procurement is currently underway, and farmers are receiving compensation for crop losses. Subsidised fertilisers like urea and DAP (Diammonium Phosphate) are also being made widely available.
He said the key measures taken for agricultural development include boosting production, reducing input costs to raise farmers’ income and ensuring fair prices for farm produce.
The minister highlighted that over the past 10 years, agricultural crop production in India has increased from 246.42 million tonnes to 353.96 million tonnes. The production of pulses rose from 16.38 million tonnes to 25.24 million tonnes, and the production of oilseeds increased from 27.51 million tonnes to 42.61 million tonnes. Horticulture production also jumped from 280.70 million tonnes to 367.72 million tonnes. The Agriculture Minister also noted a significant increase in milk production in the country, entirely driven by farmers.
Chouhan said that the National Democratic Alliance (NDA) government's current budgetary allocation for agriculture was Rs 1.27 lakh crore compared to a mere Rs 27,000 crore in the previous UPA government.
He further stated that under the Modi government, institutional credit has also surged from Rs 7 lakh crore during the UPA era to Rs 25 lakh crore today. Regarding the Pradhan Mantri Fasal Bima Yojana (PMFBY), he said the Centre has disbursed claims worth Rs 1.83 lakh crore against a collected premium of Rs 35,000 crore directly into farmers’ accounts.
The minister further stated that the Centre has restructured the PMFBY to be more farmer-friendly. If an insurance company fails to pay the due claim within 21 days of the deadline, 12 per cent interest will be charged and credited directly to the farmer’s account. The same 12 per cent interest applies if a state government delays its share of the premium.
