RU-16-01-0064-160322/BACKGROUNDER

RECORD PRODUCTION, PROCUREMENT AND MSP PAYMENTS (PPPS) IN

AGRICULTURE SECTOR
Slew of measures by the Government help raise income of farmers
(Ministry of Agriculture & Farmers Welfare)
March 16, 2022

The country is slated to witness record food grains production of estimated 316.06 million
tonnes as per the Second Advance Estimates of production of major crops for the year 2021-
22 released by the Ministry of Agriculture and Farmers Welfare. Union Minister for
Agriculture and Farmers Welfare Shri Narendra Singh Tomar said that the new record of
food grains production in the country is the result of hard work of farmers, efficient research
of scientists and farmer friendly policies of the Government.1
A slew of measures by the government in the past seven years have resulted in higher income
for the farmers as not only has there been record production in rice, wheat, maize, pulses,
gram, rapeseed & mustard oil and sugarcane, there has also been record procurement coupled
with highest MSP rates.
As per the Advance Estimates, the estimated production of major crops during 2021-22 is as
under:

➢ Food grains –316.06 million tonnes

Increase in total foodgrain
• Rice –127.93 million tonnes
production over the last 8 years*
(record)
• Wheat –111.32 million 2273.19
tonnes (record) 2500 1926.59
• Nutri / Coarse Cereals –
in million tonnes

2000
49.86 million tonnes
1500
• Maize –32.42 million tonnes
(record) 1000
• Pulses –26.96 million tonnes 500
(record) 0
• Tur –4.00 million tonnes
2006-2014 2014-2022
• Gram – 13.12 million
tonnes (record)

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https://pib.gov.in/PressReleasePage.aspx?PRID=1798835
 ➢ Oilseeds –37.15 million tonnes.

• Groundnut – 9.86 million tonnes

• Soyabean –13.12 million tonnes
• Rapeseed and Mustard –11.46 million tonnes (record)

➢ Sugarcane – 414.04 million tonnes (record)

➢ Cotton –34.06 million bales (each of 170 kg)
➢ Jute & Mesta –9.57 million bales (each of 180 kg)

Increasing trends in Food grains production:

As per 2ndAdvance Estimates for 2021-22, total Food grains production in the country is
estimated at record 316.06 million tonnes which is higher by 5.32 million tonnes than the
production of food grain during 2020-21. Further, the production during 2021-22 is higher by
25.35 million tonnes than the previous five years’ (2016-17 to 2020-21) average production
of food grains. Given below is the trends and total increase in production of food grains over
a period of 16 years.
It is notable that the production had stagnated during the years 2011-12 to 2015-16 after
touching a high of 259.29 million tonnes in the year 2011-12. Thereafter, a combination of
various factors, including an array of measures taken by the government, has resulted in a
consistent year on year rise in production.

Trends of Foodgrain Production over the last 16 years

350 316.06
297.5
285.01
300 265.05
259.29 251.54 310.74
234.47
250 217.28 218.11 275.11 285.21
in Million tonnes

257.12
252.02
200 230.78 244.49

150

100

50

Trends of Foodgrain Production over the last 16 years

- Includes Kharif and Rabi both.

*Includes second advance estimates for 2021-22 as on 16.02.2022
Record production of major food grains
• Total production of Rice during 2021-22is estimated at record 127.93 million tonnes.
It is higher by 11.49 million tonnes than the last five years’ average production of
116.44 million tonnes.
• Production of Wheat during 2021-22is estimated at record 111.32 million tonnes. It is
higher by 7.44 million tonnes than the average wheat production of 103.88 million
tonnes.
• Production of Nutri / Coarse Cereals estimated at 49.86 million tonnes, which is
higher by 3.28 million tonnes than the average production.
• Total Pulses production during 2021-22 is estimated at 26.96 million tonnes which is
higher by 3.14 million tonnes than the last five years’ average production of 23.82
million tonnes.

Given below is the chart depicting increase in production of major food grains:

Increase in production of major foodgrains over a period of 8 years

1000 920
900
791.48 809.57
800
686.97
700
in million tonnes

600
500
400
300 221.95
160.52 179.55
200 131.12
100
0
Rice Wheat Maize Pulses

2006-2014 2014-2022*

Includes Kharif and Rabi both.

*Includes second advance estimates for 2021-22 as on 16.02.2022
 Trends of Pulses production in the last 16 years*
30
25.46
25 23.13
22.08 26.96

in million tonnes
18.24 18.34 25.42
20 17.15 23.03
14.76 14.66
15 17.09 19.26 16.32
14.2 14.57
10

Trends of Pulse production in the last 16 years

*Includes second advance estimates for 2021-22 as on 16.02.2022

Increase in production of Commercial Crops

• Total Oilseeds production in the
country during 2021-22 is estimated Increase in Production of
at record 37.15 million tonnes which
is higher by 1.20 million tonnes than Oilseeds over the last 8 years
the production of 35.95 million
tonnes during 2020-21. Further, the 2533.31
3000 2326.13
production of oilseeds during 2021-
in lakh tonnes

22 is higher by 4.46 million tonnes

2000
than the average oilseeds
production.
1000
• Total production of Sugarcane in
the country during 2021-22 is 0
estimated at 414.04 million tonnes
which is higher by 40.59 million 2006-2014 2014-2022*
tonnes than the average sugarcane
production of 373.46 million tonnes.
• Production of Cotton is estimated at 34.06 million bales (each of 170 kg) is higher by
1.12 million bales than the average cotton production of 32.95 million bales.
• Production of Jute & Mesta is estimated at 9.57 million bales (each of 180 kg).
Given below is the trend of Oilseeds, Sugarcane and Cotton over the last 16 years

Trends in Oilseeds Production in last 16 years*

400 359.46
350 324.79 309.41 312.76 315.22
277.19 275.11
300 371.47
242.89 332.19
in lakh tonnes

327.49
250 297.55 297.99 314.59
248.82 252.51
200
150
100
50
0

Trends in Oilseeds Production in last 16 years*

* Oilseeds include figures of Groundnut, Castor seed, Sesamum, Niger seed, Soyabean,
Sunflower, Rapeseed & Mustard, Linseed and Safflower.
** Includes second advance estimates for 2021-22 as on 16.02.2022

Increase in Production of Increase in Production of

Sugarcane in last 8 years Cotton in last 8 years
29921.14
2636.1
26778
30000 3000 2331.36
in lakh tonnes

in lakh tonnes

20000 2000

10000 1000

0 0

2006-2014 2014-2022* 2006-2014 2014-2022*

* Includes second advance estimates for 2021-22 as on 16.02.2022

SIGNIFICANT INCREASE IN CROP PROCUREMENT
Union government had promised timely increases in MSP and delivered on it with multiple
increases. Modi government has not only announced regular MSP hikes but has also ensured
multi-fold increase in procurement of crops at MSP.
As on March 06, 2022, about 102.29 Lakh farmers have been benefitted with MSP value
of Rs. 1,42,282.68 crore from Paddy procurement.2

Increase in Procurement of Paddy over the last 5 years

894.33

900 770.93
725.93**
800 660.11
700 568.39
600
in LMTS

500
400
300
200
100
0
2017-2018 2018-2019 2019-2020 2020-2021* 2021-2022**

Increase in Procurement of Paddy over the last 5 years

Given below are the graphs showing increase in procurement of paddy:

* As on 31.12.2021
** KMS 2021-22 is under progress. Data reported up to 06.03.2022

2
https://pib.gov.in/PressReleasePage.aspx?PRID=1803616
 State wise Paddy procurement for KMS 2021-22**

Puducherry 0.02
Chandigarh 0.27
Himachal Pradesh 0.28
NEF (Tripura) 0.31
J&K 0.41
Assam 0.69
Rajasthan 0.73
Gujarat 1.22
Karnataka 1.49
Kerala 2.6

Jharkhand 4.3
States

Uttrakhand 11.56
Maharashtra 13.36
West Bengal 16.04
Tamilnadu 21.58
A.P 36.67
Bihar 44.9

M.P 45.83
Odisha 54.55

Haryana 55.31
U.P 65.45
70.22
Telangana
Chattisgarh 92.02

Punjab 186.86

0 20 40 60 80 100 120 140 160 180 200

(figures in LMT)

Punjab Chattisgarh Telangana U.P Haryana

Odisha M.P Bihar A.P Tamilnadu
West Bengal Maharashtra Uttrakhand Jharkhand Kerala
Karnataka Gujarat Rajasthan Assam J&K
NEF (Tripura) Himachal Pradesh Chandigarh Puducherry

** KMS 2021-22 is under progress. Data reported up to 16.02.2022

Wheat Procurement

Not only the production, but also the procurement and MSP on wheat has increased
considerably over the last few years benefitting the farmers at large. The quantity of wheat
procured has increased from 250.72 LMT in RMS 2013-14 to 433.44 LMT in RMS 2021-
22.

Increasing trends of Wheat procurement

433.44
450.00 389.92
400.00 357.95
341.32
350.00 308.24
281.31 280.88
300.00 250.72
229.61
in LMT

250.00
200.00
150.00
100.00
50.00
0.00
2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22

Trends of increasing Wheat procurement

 State wise Wheat procurement for RMS 2021-22

Maharashtra 0.01

Delhi 0.06

Himachal Pradesh 0.13

Chandigarh 0.17

J&K 0.24

Uttrakhand 1.44

Gujarat 1.71
States

Bihar 4.56

Rajasthan 23.4

U.P 56.41

Haryana 84.93

Chattisgarh 92.02

M.P 128.16

Punjab 132.22

0 20 40 60 80 100 120 140

(figures in LMT)

Punjab M.P Chattisgarh Haryana U.P

Rajasthan Bihar Gujarat Uttrakhand J&K
Chandigarh Himachal Pradesh Delhi Maharashtra

Source
Constant Rise in Number of Farmers benefitted from procurement in different
Marketing Seasons (for Paddy and Wheat):
Rs. 2.37 lakh crore direct payment to1.63 crore farmers for procurement of wheat and
paddy.3

Number of Farmers benefitted (Paddy and Wheat)

13112282
12459354
14000000
12000000 9693641
9275871*
7308416 7685168 7230859
10000000
8000000
6000000
4000000
2000000
0
KMS 2015- KMS 2016- KMS 2017- KMS 2018- KMS 2019- KMS 2020- KMS 2021-
16 17 18 19 20 21 22*

Number of Farmers benefitted (Paddy and Wheat)

Number of Farmers benefitted (Paddy and Wheat)

4919891
4335972
4033463 3557080
5000000
3187229
4000000
2046766
3000000

2000000

1000000

0
RMS 2016-17 RMS 2017-18 RMS 2018-19 RMS 2019-20 RMS 2020-21 RMS 2021-
22*

Number of Farmers benefitted (Paddy and Wheat)

** Data as on 16.02.2022

** KMS 2021-22 is under progress. Data is available from KMS 2015-16 and RMS 2016-17
onwards

➢ For State wise list of number of Framers benefitted, Click here.

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https://www.pib.gov.in/PressReleasePage.aspx?PRID=1794165
INCREASE IN MSP4 - Rice MSP up 42 %; Wheat up 39% over 2014-15
• Payments to farmers in the form of MSP have shot up manifold, ensuring that the
MSP hikes actually benefit the farmers.
• MSP for Rice, which was Rs 1360 in the year 2014-15 has shot up to Rs 1940 in
the year 2021-22 ie an increase of 42.64 per cent
• MSP for Wheat, which was Rs 1450 in the year 2014-15 has shot up to Rs 2015 in
the year 2021-22 ie an increase of nearly 39 per cent
• Modi government announced MSP hikes based on the formula that farmers will get at
least 1.5 times the cost of production. This was a promise made and delivered.
• This formula also included factors like family labor in the cost of production, which is
a way of recognizing the work of the whole family rather than just individual farmers.
• The government ensured greater procurement and greater payments to farmers,
ensuring that MSP hikes did not remain on paper but actually reached farmers.
Below are the trends of increase in MSP per quintal (Year on Year)

For source of above two graphs, Click here.

For complete information on Minimum Support Prices for various crops, Click here

4
https://transformingindia.mygov.in/wp-content/uploads/2020/12/Putting-Farmers-First.pdf
Putting Farmers First
Agriculture being a State subject, the State Government is primarily responsible for the growth
and development of agriculture sector and developing perspective plans for their respective
States and ensuring effective implementation of the programmes/schemes. However,
Government of India supplements the efforts of the State Governments through various Schemes
/ Programmes.
The details of various schemes, reforms and policies are given below.5

• Unprecedented enhancement in budget

allocation: In the year 2022-23, the Budget Exponential increase in Union
allocation has been increased by more than Agriculture Budget
five times to Rs. 1,24,000 crore.6 The
Budget allocation for Department of 124000
Agriculture in the year 2013-14 was only 150000
Rs. 21933.507 crore.

Rs in crores
100000
• Fixing of MSP at one-and-a half times
the cost of production 21933.50
50000
• Increase in procurement from farmers
• Income support to farmers through PM 0
2013-2014 2022-2023
KISAN

• Pradhan Mantri Fasal BimaYojana (PMFBY)

• Institutional credit for agriculture sector
• Providing Soil Health Cards to farmers
• Promotion of organic farming in the country
• Neem Coating of Urea
• Agri Infrastructure Fund
• Promotion of FPOs Scheme
• National Bee and Honey Mission (NBHM)
• Pradhan Mantri KrishiSinchai Yojana (PMKSY)
• Micro Irrigation Fund
• Agricultural Mechanization
• Changes in Disaster Relief Standards
• Setting up of E-NAM extension Platform
• Improvement in farm produce logistics,
• Creation of a Start-up Eco system in agriculture and allied sector
• Government of India has launched the Aatmanirbhar Bharat Abhiyan (ABA) to
strengthen Infrastructure, Logistics, Capacity Building, Governance and
Administrative Reforms for Agriculture.

5
https://www.pib.gov.in/PressReleasePage.aspx?PRID=1741942
6
https://www.indiabudget.gov.in/doc/eb/sumsbe.pdf
7
https://pib.gov.in/PressReleasePage.aspx?PRID=1685570
Major Boost to Agriculture Sector in Budget 2022
Slew of multi modal developments during Amrit Kaal to benefit farmers
• Chemical-free Natural Farming to be promoted throughout the country, with a
focus on farmers’ lands in 5-km wide corridors along river Ganga, at the first stage.

• 2023 announced as International Year of Millets: Support will be provided for post-
harvest value addition, enhancing domestic consumption, and for branding millet
products nationally and internationally.

• A rationalized and comprehensive scheme to

increase domestic production of oilseeds to
be implemented to reduce dependence on
imports.

• Scheme for delivery of digital and hi-tech

services to farmers with involvement of
public sector research and extension
institutions along with private agri-tech
players and stakeholders of agri-value chain
will be launched in PPP mode.

• Use of ‘Kisan Drones’ to be promoted for

crop assessment, digitization of land records,
spraying of insecticides, and nutrients.

• Startups to be promoted to facilitate 'Drone PM on launch of 100 Kisan drones by Garuda

Shakti' through varied applications and for Aerospace on 19th February 2022
Drone-As-A-Service (DrAAS). In select ITIs,
in all states, the required courses for skilling to be started.

• Implementation of the Ken-Betwa Link Project, at an estimated cost of Rs. 44,605

crores to be taken up.

• Contracts for laying optical fibre in all villages, including remote areas, to be awarded
under the Bharatnet project through PPP in 2022-23. Completion expected by 2025.

For details on major announcements for Agriculture in Union Budget 2022, Click here.

Sources:

• http://fci.gov.in/app/webroot/upload/Procurement/1.%20RICE%20KMS%2021-22.pdf
• http://fci.gov.in/app/webroot/upload/Procurement/2.%20Paddy%202021-22.pdf
• http://fci.gov.in/app/webroot/upload/Procurement/3.No%20of%20farmers%20benfited.
pdf
• https://eands.dacnet.nic.in/Advance_Estimate/Time%20Series%202%20AE%202021-
22%20(English).pdf
• http://fci.gov.in/app/webroot/upload/Procurement/Wheat%20Proc-10%20Years.pdf
• https://dfpd.gov.in/writereaddata/Portal/Magazine/webupdationDecember2021.pdf
• https://eands.dacnet.nic.in/PDF/English%20MSP%202021.pdf
 • https://agricoop.nic.in/sites/default/files/FirstEstimate2020-21.pdf
• https://transformingindia.mygov.in/wp-content/uploads/2020/12/Putting-Farmers-First.pdf

AG/HP/RC/AKP