Minimum Support Prices for Agricultural Produce

[pib] Inter-Ministerial committee for “Doubling the income of Farmers”


Mains Paper 3: Agriculture | Issues related to direct and indirect farm subsidies and minimum support prices

From UPSC perspective, the following things are important:

Prelims level: Various schemes related to farmers

Mains level: The newscard enlists various initiatives at a glance, by the government for doubling farmer’s income


Expert Committee

  1. The Government has constituted an Inter-Ministerial Committee under the Chairmanship of Chief Executive Officer, National Rainfed Area Authority, Department of Agriculture, Cooperation and Farmers Welfare.
  2. It aims to examine issues relating to the doubling of farmers’ income and recommend a strategy to achieve doubling of farmers’ income in real terms by the year 2022.

Building strategy for doubling of farmers’ income by 2022

  1. The Government has set a target of doubling of farmers’ income by the year 2022.
  2. In order to realise net positive returns for the farmer, schemes as follows, are being promoted and implemented in a major way through the States/UTs viz:-
  • Soil Health Card (SHC) scheme;
  • Neem Coated Urea (NCU);
  • Pradhan Mantri Krishi Sinchayee Yojana (PMKSY);
  • Paramparagat Krishi Vikas Yojana (PKVY);
  • National Agriculture Market scheme (e-NAM);
  • Pradhan Mantri Fasal Bima Yojana (PMFBY);
  • National Food Security Mission (NFSM);
  • Mission for Integrated Development of Horticulture (MIDH);
  • National Mission on Oilseeds & Oilpalm (NMOOP);
  • National Mission for Sustainable Agriculture (NMSA);
  • National Mission on Agricultural Extension & Technology (NMAET) and
  • Rashtriya Krishi Vikas Yojana (RKVY)
  1. In addition, schemes relating to tree plantation (Har Medh Par Ped), Bee Keeping, Dairy and Fisheries are also implemented.
  2. All these schemes are implemented to enhance production and productivity of agriculture and thereby enhance income of farmers.

Minimum Support Price (MSP)

  1. MSP is notified for both Kharif & Rabi crops based on the recommendations of the Commission on Agriculture Costs & Prices (CACP).
  2. The Commission collects & analyses data on the cost of cultivation and recommends MSP.
  3. Giving a major boost for the farmers’ income, the Government has increased the Minimum Support Prices (MSPs) of all kharif crops for 2018-19 Season.
  4. This decision of the Government is a historic one as it redeems the promise of the pre-determined principle of fixing the MSPs at a level of at least 150 per cent of the cost of production announced by the Union Budget for 2018-19.

Farmer’s income is yet to be surveyed

  1. National Sample Survey Office (NSSO) has not conducted any survey during the last one year for collecting data on the present income of country’s farmers and animal rearers residing in various parts of the country.
  2. However, NSSO conducted a Situation Assessment Survey (SAS) of Agricultural households during its 70th round (January 2013- December 2013) in the rural areas of the country with reference to the agricultural year July 2012- June 2013.
  3. The survey collected the details of income generated by the agricultural households during the agricultural year from July 2012-June 2013 from different economic activities.
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