Current Affairs

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.

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