INCREASE IN INCOME OF FARMERS
INCREASE IN INCOME OF FARMERS
The Government of India is implementing various schemes/programmes for the welfare of farmers by increasing production, remunerative returns and income support to farmers. The details are given below:
The budget allocation of Ministry of Agriculture and Farmers’ Welfare, during 2013-14 was Rs. 27,662.67crore. This has increased by more than 5 times to Rs. 1,25,035.79 crores during2023-24 BE. As a result, Gross Value Added (GVA) of Agriculture and Allied Sector has been growing at a rate of 4.4 percent per annum over the last seven years.
National Sample Survey Office (NSSO), Ministry of Statistics and Programme Implementation (MoSPI) conducted a Situation Assessment Survey (SAS) of Agricultural Households during NSS 77thround (January 2019- December 2019) with reference to the agricultural year July 2018- June 2019 in the rural areas of the country. Similar survey was also conducted during NSS 70thround (January 2013- December 2013) with reference to the agricultural year July 2012- June 2013 by NSSO. As per result of SAS, the average monthly income per agricultural household has increased from Rs. 6426 during 2012-13 to Rs. 10218 in 2018-19.
The details of Projected Cost of Production of various grains per quintal from 2019-20 to 2023-24 is given below in table:
Government fixes minimum support prices (MSPs) for 22 mandated crops, on the basis of the recommendations of the Commission for Agricultural Costs &Prices (CACP), after considering the views of State Governments, Central Ministries/ Departments other stakeholders, concerned. While recommending MSP, CACP considers important factors like overall demand-supply conditions, cost of production, domestic and international prices, intercrop price parity, terms of trade between agricultural and non-agricultural sectors, the likely effect on the rest of the economy, besides ensuring rational utilization of land, water and other production resources.
The National Commission on Farmers (NCF) was constituted under the Chairmanship of Prof. M.S. Swaminathan, in November 2004, with a mandate to examine the various issues which include a medium-term strategy for food and nutrition security, enhancing productivity, profitability and sustainability, policy reform for flow of rural credit, cost competitiveness of farm commodities, among others. The Commission submitted its final report in 2006. It also prepared the Draft National Policy for Farmers, which was subsequently approved by Government as National Policy for Farmers (NPF), 2007. However, one of the recommendations of NCF relating to Agricultural Price Policy -Minimum Support Price (MSP) should be at least 50 percent more than the weighted average cost of production- was not included in NPF.
To give recognition to one of the important recommendations of NCF on Price Policy, Government in its Union Budget for 2018-19 had made an announcement to keep MSP at a level of one and half times of the cost of production as a pre-determined principle. Accordingly, MSPs for all mandated Kharif, Rabi and other commercial crops have been fixed with a return of at least 50 per cent over all India weighted average cost of production, each year, since 201819.
The procurement of foodgrain has increased from 761.40 lakh metric tonnes in 201415 to 1062.69 lakh metric tonnes in 2022-23 benefitting more than 1.6 crore farmers. The expenditure incurred (at MSP values) on procurement of foodgrains increased from 1.06 lakh crores to 2.28 lakh crores, during the same period.
Details of Projected Cost of Production-CoP, MSP and Return over Cost of Production of various Food Grains
(Rs./Qtl)
Sl.
No.
Commodity
2019-20
2020-21
2021-22
2022-23
2023-24
CROPS
Cost of Production
MSP
%
Return over
Cost
Cost of Production
MSP
%
Return over
Cost
Cost of Production
MSP
%
Return over
Cost
Cost of Production
MSP
%
Return over
Cost
Cost of Production
MSP
%
Return over
Cost
1
PADDY
(Common)
1208
1815
50
1245
1868
50
1293
1940
50
1360
2040
50
1455
2183
50
2
JOWAR
(Hybrid)
1698
2550
50
1746
2620
50
1825
2738
50
1977
2970
50
2120
3180
50
3
BAJRA
1083
2000
85
1175
2150
83
1213
2250
85
1268
2350
85
1371
2500
82
4
RAGI
2100
3150
50
2194
3295
50
2251
3377
50
2385
3578
50
2564
3846
50
5
MAIZE
1171
1760
50
1213
1850
53
1246
1870
50
1308
1962
50
1394
2090
49
6
WHEAT
923
1925
109
960
1975
106
1008
2015
100
1065
2125
99
1128
2275
101
7
BARLEY
919
1525
66
971
1600
65
1019
1635
60
1082
1735
60
1158
1850
60
This information was given by the Union Minister of Agriculture and Farmers’ Welfare, Shri Arjun Munda in a written reply in Rajya Sabha today.
******