Agriculture

Most farmers did not know of agencies that procured crop under MSP: Report

Only 23.7% and 24.7% paddy produced was sold under MSP in Kharif and Rabi season respectively of 2018-19

 
By Shagun Kapil
Published: Tuesday 14 September 2021

Only about 24 per cent paddy and 20 per cent wheat is sold under minimum support price (MSP) in India, according to the findings of the 77th round of the National Sample Survey report.  

The data from the report, titled Situation Assessment of Agricultural Households and Land and Holdings of Households in Rural India, 2019, is from 2018-2019 agricultural year (July 2018-June 2019). 

The report also underlined the percentage of farmer families aware of the procurement agency under MSP they should sell the crop to.

Only 14.5 and 18.5 per cent farmer families sold their produce to the government procurement agency under MSP in the Kharif and Rabi season respectively. This figure was even less for wheat — only 9.7 per cent farmer families sold their crops to the procurement agency under MSP. 

A very minuscule number of farmer families sold crops such as maize, jowar, groundnut and rapeseed to procurement agencies. 

As much as 27.9 and 40.7 per cent sugarcane was sold in Kharif and Rabi season to procurement agencies — the highest among other crops.

Sold at MSP

Only 23.7 per cent of total paddy produced was sold under MSP in Kharif season (July 2018-December 2018); it was 24.7 per cent in Rabi season (January 2019 to June 2019).

Paddy and wheat are the two major crops procured by the government at MSP; but even their output sold under the assured price was less.

Making MSP legally enforceable has been one of the key demands of the farmers in the ongoing protests against the farm laws passed by the Union government in 2020. 

Among other crops, only 17.8 per cent cotton in Rabi and 7.8 per cent in Kharif was sold under MSP. This figure was much lower for jowar (0.5-2.9 per cent), bajra (2.5 per cent) and maize (4-5.8 per cent).

More farmers received MSP for sugarcane; 40 per cent of the produce was sold under MSP in Rabi season and 18.5 per cent in Kharif season.

The report also highlighted the awareness around MSP among farming households. Despite the government declaring MSP on major crops every year, its awareness was as low as 40.7 per cent for paddy, 21 per cent for maize and 39.8 per cent for sugarcane. 

While 52.8 per cent farmers were aware of MSP on paddy during 2019 Rabi season, only 37.1 per cent were aware on wheat crop. In the Kharif season, 39.8 per cent farmers were aware of sugarcane, while this percentage was 56.9 per cent in the Rabi season. 

Awareness was even lower for other crops such as ragi (4.3 per cent), coconut (11 per cent), soyabeen (28.3 per cent) and groundnut (22 per cent). 

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