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.
