ECONOMICS & STATISTICS 

 

The Directorate of Economics and Statistics (DES), an attached office of the Department of Agriculture and Cooperation, collects, disseminates and publishes statistics on diverse facets of agriculture and related sectors required for policy formulation by the Government. Over the years, a number of initiatives have been taken to bring about improvement in the coverage, quality and timely availability of these statistics. Recent years have witnessed growing emphasis on the need to bring about necessary changes and refinements in the existing system to make it capable of coping with the challenges posed by emerging policy issues in a more open economy.              

Among the various functions of the DES, the most well known is perhaps the one relating to Minimum Support Prices (MSPs), which are fixed on the basis of the recommendations made by the Commission for Agricultural Costs and Prices. The most important factor considered by the CACP in making its recommendations on MSPs for different crops is the cost of cultivation/production for which the data base is provided by the DES through its plan scheme on cost of cultivation. The relevance and significance of MSP is linked to production and prices. Advance information on the production of different crops therefore assumes considerable importance. Similarly monitoring of the price movements in both the domestic and international markets is equally important in relation to the MSP regime. A sound database on different facets of agriculture is important both for the formulation of policy and the evaluation of its  effectiveness in achieving the desired goals. The Plan Schemes of DES seek to serve this purpose. 

In keeping with the need to adopt a holistic approach to the implementation of individual schemes with inter-related objectives, it has been proposed to merge the on-going plan schemes into three broad umbrella schemes.  The details of these schemes , with special reference to the component schemes, are given below. 

1.       Studies on Inputs for Agricultural Economic Policy and Development. 

This umbrella scheme seeks to create and maintain data base for studies/reports/research aimed at providing inputs for agricultural policy and development.  

1.1.         Comprehensive Scheme for Studying the Cost of Cultivation of   

Principal Crops in India.

 The Comprehensive Scheme for studying the Cost of Cultivation of Principal Crops in India is being implemented since 1970-71 as a 100% Central Sector Plan Scheme on the basis of recommendations made by the Standing Technical Committee on Indices of Input Costs constituted in 1967 under the Chairmanship of Dr. Ashok Mitra. The main objectives of the scheme are as follows:- 

(i)                  collection and compilation of field data on cost of cultivation and  cost of production in respect of 29 crops

(ii)                estimation of crop-wise and state-wise costs of cultivation and production, and

(iii)               computation of the indices of terms of trade between agriculture and non-agriculture sectors.

 The estimates of cost of Cultivation are used by Commission for Agricultural Costs and Prices( CACP) for recommending Minimum Support Prices (MSPs) of 25 crops. Directorate of Economics & Statistics (DES) in the Ministry of Agriculture gets this study conducted through 16 Agricultural/General Universities/Colleges besides the Directorate of Tobacco Development.  Under this scheme, the field data pertaining to the cost of cultivation/ cost of production are collected, compiled and tabulated by different Implementing Agencies. The data are checked, corrected, validated and analysed to generate crop-wise and state-wise cost estimates by DES before these are passed on to the CACP to be used as data base for recommending the MSPs of various agricultural commodities to the Government of India. 

The cost estimates generated under the scheme are also used for policy formulation by the Central Government and State Governments, and others including Agricultural/General Universities, Government / Non-Government Research Organizations, and individual researchers. In addition, the data are also used for working out the Index Numbers of Terms of Trade between Agriculture and Non-agricultural Sectors.      

The scheme is being implemented in 16 states, namely, Andhra Pradesh, Assam, Bihar, Gujarat, Haryana, Himachal Pradesh, Karnataka, Kerala, Madhya Pradesh, Maharashtra, Orissa, Punjab, Rajasthan, Tamil Nadu, Uttar Pradesh and West Bengal. The scheme covers 29 crops ,namely, paddy, wheat, jowar, bajra, maize, ragi, barley, moong, urd, arhar, gram, masur, groundnut, rapeseed/ mustard, nigerseed, soyabean, sunflower, sesamum, cotton, jute, sugarcane, VFC tobacco, onion, potato, ginger, tapioca, areacanut, coconut and black pepper.      

The field data under the scheme are collected on the Cost Accounting Method under which daily entries of debit/credit for the expenditure/income are made in order to assess the total cost incurred/benefit accrued by/ to each farmer covered under the scheme.  The field data are collected by the field-men.  The detailed questionnaires are filled up/updated on monthly/annual basis after making enquiries on a daily basis from 10 farm holdings which consist of 2 each from 5 different size classes i.e. upto 1 hectare, 1-2 hectares, 2-4 hectares, 4-6 hectares and above 6 hectares allotted to each field-man. 

During the 9^th Five Year Plan an expenditure of Rs.687700 thousand was incurred under the scheme.  The actual expenditure during 2000-01 and 2001-02 was Rs.138500 thousand and Rs.189500 thousand respectively. An allocation of Rs. 985000 thousand has been proposed for the 10^th Five Year Plan.  Out of total allocation of Rs. 185800 thousand  for the year 2002-03, an amount of Rs. 77600 thousand has already been released by September, 2002 as the first installment of grant-in-aid. The scheme is proposed to be implemented on block grant basis from 2003-04.      

No specific activities are undertaken for the women and for the North-Eastern States under this Scheme as it is meant for collection and compilation of data on cost of cultivation and cost of production of agricultural crops. In the North- Eastern Region, the scheme is in operation in Assam only through the Assam Agricultural University, Jorhat for which an amount of Rs. 5800 thousand has already been released during the year 2002-03 out of an allocation of Rs. 11500 thousand. The proportional contribution of principal crops to the national total production by other North-Eastern States is not significant enough for conducting study in these States. 

1.2 Agro-Economic Research Scheme

 The Agro-Economic Research Scheme was initiated in 1954-55 for undertaking research studies on agro-economic problems in the country.  The Scheme is being implemented through 12 Agro-Economic Research Centres, and 3 Regional Centres, which are fully funded by Non-Plan funds.  These Centres have been established to take up problem -oriented studies on regional basis with a view to generate the requisite feedback from the grass-root level, the ways and means for improving the effective monitoring of various programmes/schemes implemented by the Ministry to cover the entire country. Three Units undertake studies mainly on inter-regional or all India level.  During 2001-02, 54 of such studies were completed and during 2002-03, 40-50 number of such studies are proposed to be completed.  On an average, about 40-50 research studies are got prepared annually from these Centres concerning economic policy on agriculture, animal husbandry, water management and allied areas.  Budget Estimates of Rs. 16000 thousand  as Central Sector Plan and Rs. 44800 thousand as non-Plan have been provided during 2002-03 for the implementation of the scheme.    

1.3 Planning & Management of Agriculture

 The Indian economy has undergone significant structural changes over the years since independence. From the point of view of the farm economy, the most significant change seems to have been the transformation of Indian agriculture during this period. The farming community in India responded to the challenges posed by growing population and contributed substantially to raise agricultural production and productivity in the country. However, there has been no systematic attempt to assess the impact of these changes on the farm economy, with focus on the state of the Indian farmers. Keeping this in view, a Central Sector Scheme “ Planning & Management of Agriculture” was formulated during 1998-99 which provides for incurring expenditure on organization of consultations/workshops with eminent agricultural experts/scientists etc., sponsoring studies on status of policies/regulations, for engagements of consultants for preparation of new decentralized strategy for development of crops, animals, dairy, poultry, irrigation, soil and water conservation etc. and bring out studies/ papers/reports based on the recommendations of the workshops/consultations etc. 

The scheme also includes the cost of Millennium Study on the state of Indian Farmers, which would form the basis for policy formulation based on a  long-term perspective. This study has been planned to be conducted in three phases, which would be implemented under the overall guidance of a Technical Committee and supervision of a Steering Committee of experts appointed for the purpose. Phase I of the study will bring out a series of status papers on various aspects of agriculture impacting the farmers, on the basis of existing data sources and research material, essentially for the purpose of bench marking. The output of this phase would provide a historical perspective of last 50 years of agricultural development in the country to the planners. A country wide survey with the farmer as a focus is planned for  Phase II.  Phase III of the Study would be concentrating on analysis of the conditions of the farmers as a consequence of past macro policies and programmes based on the ground truth which would be provided by Phase II.      

            As far as current status of the Study is concerned,  phase-I of the Study is nearing completion. During this phase, 26 studies focusing on the themes based on sectoral division of agriculture have been commissioned. A mid-term review seminar for presentation of these studies was organised in January 2002.  On the basis of the feedback received in the mid-term review, a seminar for discussion of final papers is to be organised in Delhi in February 2003. It is also proposed to publish the revised papers through a reputed publisher in the form of a compendium, which would give an outline of the developments in agriculture during the last 50 years with farmers as the main focus.

            The work on Phase-II viz. Situation Assessment Survey has started. This survey is being conducted by the National Sample Survey Organisation (NSSO). Department of Agriculture and Cooperation is to meet the entire cost of  the Survey, which is expected to be around Rs.90000 thousand  The work for planning of the survey and designing of the schedule (Survey Questionnaire) has already been completed.  The actual fieldwork of interviewing the farmers has commenced in January 2003 and is expected to be completed in January 2004.

            During the year 2002-03, a budget provision of Rs.112500 thousand has been earmarked for this Scheme against an expenditure of Rs. 56200 thousand during the year 2001-02.  During 2003-04, the Scheme is proposed to be merged under the common umbrella scheme “Studies on Inputs for Agricultural Economic Policy and Development” 

1.4     Strengthening of Agricultural Statistics & Agricultural Policy Formulation.  

The budget provided for the scheme during the year 2002-03 is Rs. 17500 thousand. The objective of this scheme is to strengthen the system of agricultural statistics and policy formulation by strengthening the research techniques and upgrading of skills of personnel involved in the compilation and analysis of data.  During the year 2002-03, a National Workshop on Improvement of Agricultural Statistics was held on 26-27 June 2002 which was inaugurated by Shri J.N.L. Srivastava, Secretary (Agriculture & Cooperation).  The workshop was attended by a large number of representatives from Ministry of Agriculture, Central Statistical Organisation, National Sample Survey Organisation, Department of Space, Commission for Agricultural Costs and Prices, State Governments, Research Institutions like IASRI and State Agricultural Universities.  The Workshop discussed various issues including the need to reduce the divergence in successive estimates of crop production, increased application of remote sensing technology in agriculture sector, new methodologies for estimation of fruit and vegetable production and estimation of small area statistics.  The workshop also discussed the recommendations of the National Statistical Commission (NSC) on the agriculture statistics, and it was agreed that States would take appropriate action in the matter.

            This Directorate has brought out the annual publication “Agricultural Statistics at a Glance” in June 2002.  This is a very useful publication and is used as a compendium for data on almost all important aspects of Indian Agriculture by planners, agricultural scientists and research scholars.  The scope of the latest issue has been enlarged by including sections on horticulture and plantation crops as well as a few new tables on State-wise poverty line, time series data on annual growth rates in agriculture, commodity-wise and year-wise exports/imports, key economic indicators, etc.  The various Sections in the publication have been made more reader friendly.  This publication is widely circulated and highly appreciated by users.

 2.  Improvement of Agricultural Statistics.

 The Agriculture Statistics Improvement (ASI) Division in the DES has the responsibility to look after the implementation of Plan schemes dealing with the collection/improvement of agricultural statistics. Up to the end of the IX Plan, the  ASI Division was handling the implementation of the  three on-going Centrally Sponsored Schemes, namely (i) Timely Reporting Scheme, (ii) Improvement of Crop Statistics, (iii) EARAS and one Central Sector Scheme, namely,  Crop Estimation on Fruits and Vegetables. However, for the Xth Five Year Plan, as recommended by the Planning Commission, an Umbrella Scheme, “Improvement of Agricultural Statistics” was formulated by combining the above- mentioned four schemes of IXth Plan. The earlier four plan schemes have now become the components of the umbrella scheme with no change in any of the basic parameters. The component-wise details are given as under.  

2.1. Crop Estimation Survey of Fruits, Vegetables and Minor Crops 

This component before merger with Umbrella scheme was a Centrally Sponsored Plan Scheme of the 9^th Five Year Plan. This is being implemented since the Sixth Plan to generate estimates of area and production of fruits, vegetables and minor crops in the country. The component is presently being implemented in 11 States and a total of 14 crops are covered: 7 each of fruits and vegetables. The methodology developed by the Indian Agriculture Statistical Research Institute, is being used for generation of these estimates. Budget Estimates of Rs. 40000 thousand has been provided for the year 2002-03 under this component. 

The different fruits and vegetables which are being covered are: apple, mango, citrus, pineapple, grape, banana, guava, potato, onion, cabbage, cauliflower, tomato, ginger and turmeric. The component is being implemented in the States  of Andhra Pradesh, Gujarat, Haryana, Himachal Pradesh, Karnataka, Maharashtra, Orissa, Punjab, Rajasthan, Tamil Nadu and Uttar Pradesh.

 2.2     Timely Reporting of Estimates of Area and Production of Principal Crops 

The objective of this component is to obtain estimates of area and production of principal crops, in each season, with a break up of area under irrigated/unirrigated and traditional/high yielding varieties of crops on the basis of priority enumeration conducted in a sample of 20 per cent of villages by a specific date. The States are required to furnish these estimates by 30^th November for Kharif Crops and by 30^th April for Rabi crops. These estimates are used for generating advance estimates of production of principal crops. This component is being implemented in 16 land record States and also Union Territories of Delhi and Pondicherry. The component has funding pattern on 50:50 basis between the Central Government and the State Governments. The estimates of area and production of principal crops for Kharif and Rabi seasons for the agricultural year 2001-02 have been received from all the implementing States/Union Territories under the component. The performance of the component of the main scheme namely Improvement of Agricultural Statistics is also being closely monitored through Quarterly Progress Reports and Seasonal Progress Reports. The Budget Estimates of 2002-03 have provided Rs. 42500 thousand as the share of the Central Government. 

2.3 Improvement of Crop Statistics 

            This component was also an on going Centrally Sponsored Scheme of the 9^th Five Year Plan, before it got merged into the umbrella scheme. The objective of this component  is to improve the quality of statistics of area and production of crops through supervision and monitoring. Under this scheme, a sample check of area enumeration and crop cutting experiments of 10,000 villages and approximately 31,000 experiments at harvest stage are undertaken. These samples are equally shared by the Central Agency, i.e. National Sample Survey Organization and the State Agricultural Statistical Authorities. These checks specifically relate to (I) Enumeration of crop wise area covered in the selected villages as recorded by the Patwari, (ii) Total of the area under each crop recorded in Khasra Register of villages and (iii) Supervision of crop cutting experiments at the harvest stage. This component is being implemented in all those 16 States where Timely Reporting component is in operation. The Budget Estimates of Rs. 28500 thousand has been provided  under this component during 2002-03. The performance of the component is also being closely monitored through Quarterly and Seasonal Progress Reports.

 2.4  Establishment of An Agency for Reporting of Agricultural Statistics 

This component is being implemented in the permanently settled States of West Bengal, Kerala, Orissa and North Eastern States of Nagaland, Sikkim and Arunachal Pradesh. Under this component, an agency has been established in these States for generating estimates of area and production of principal crops and land use statistics, on the basis of complete enumeration of 20 per cent villages in each year. Budget Estimates of Rs. 95000 thousand has been  provided during 2002-03 under this component. The performance is being closely monitored through Quarterly and Seasonal Progress Reports. 

3. Forecasting and Remote Sensing  Application in Crop Husbandry

       The schemes that come under this umbrella strive to reap the benefits from space technology in crop forecasting. The purpose is to use this technology to   cross check and validate data from all other existing/available sources so as to reduce the time lag and increase reliability in the forecasting of area and production under different crops. 

3.1 Crop Acreage and Production Estimation (CAPE) 

 CAPE is a Central Sector Scheme. It was initiated during the 7^th Five Year Plan as one of the components of the scheme named ‘Remote Sensing application mission for agricultural application’ (RSAMAA). The scheme was initially monitored by the crops division, but later on was transferred to DES. The scheme is funded by the Ministry of Agriculture and operated by the Dept. of Space, Ministry of Science and Technology, Govt. of India. The scheme aims at the application of space Technology for estimating crop acreage and yield at least a month before the actual harvesting of crops. In this process, the scheme enables development and upgradation of methodologies in consonance with state of art RS technology and sensor capabilities for crop inventory assessment at different geographical units.  As the advance estimates of area and production of crops are required for taking policy decisions  on procurement storage and pricing measures, remotely sensed data has an immense potential in the timely monitoring of the crop acreage and production at district/group of districts/regional levels due to its wide area synoptic coverage using the Remotely sensed data at the peak vegetative stage of crops, it is possible to give pre harvest estimates of crop acreage at the right time. 

 3.2National Crop Forecasting Centre (NCFC)

 The NCFC is a Central Sector Scheme. It was initiated at the end of the year 1998 with two fold functions;- 

i)                     Periodic crop forecasting for major crops and

ii)                   Coordination and assimilations of various methodologies and technical advancement relating to crop forecasting. 

The main functions of NCFC are: 

a)                  Providing the effective unified institutional framework for the entire crop forecasting system in the country involving data flow, assimilation, analysis and dissemination of statistics.

b)                  Periodic crop forecasting for major crops through assimilation of information generated by the different Organizations such as IMD, Medium Range Weather Forecasting of Department of Science & Technology, Department of Space (DOS), Central Statistical Organization (CSO), Indian Agricultural Statistics Research Institute (IASRI), Field Operations Division of the National Sample Survey Organization (NSSO) and the SASA’s, State Agriculture Departments etc.

c)                  Coordination and assimilation of various methodologies and technical advancement relating to crop forecasting.

d)                  Central level monitoring of the situation about crop, weather, supply of inputs, pests/diseases and related aspects through the mechanism of Crop & Weather Watch Group in the Department of Agriculture & Cooperation.

e)                  Providing a forum for the Standing Technical Committee on Agricultural Statistics to review and monitor the development of the methodologies for crop forecasting in particular and Agricultural Statistics in general, which has already been constituted as a follow up of the recommendation No. 8 of the Expert Group.

f)                    During the 9^th Plan, the professional posts envisaged for NCFC could not be created and NCFC operated by ad-hoc deployment of professionals with a truncated mandate.

g)                  The budget provided for NCFC during the year 2002-03 is Rs. 800 thousand. 

3.3 Special Data Dissemination Standards 

This is also an on-going Central Sector Plan Scheme in the DES.  Under this scheme, quarterly estimates of agricultural production are generated for use in the compilation of Quarterly National Accounts by the Central Statistical Organisation.  The scheme has been undertaken in order to meet the obligations concerning supply of data to the International Monetary Fund.   The estimates of quarterly crop production generated are being furnished to the Central Statistical Organisation.  In the absence of direct data, quarterly production is estimated by using the estimates of Kharif and Rabi seasons in conjunction with crop calendar.  During 2002-03, quarterly estimates of agricultural production are being generated as per prescribed time schedule and furnished to the Central Statistical Organisation. 

In order to improve upon the quality of quarterly estimates by way of refining the estimation procedure and cross validation of results, available data from other sources such as National Sample Survey Organisation and Agriculture Marketing Division are also being used.  This is a staff-oriented scheme and Revised Estimates for 2002-03 amount to Rs. 925 thousands. 

4. Livestock Census. 

The Livestock Census is being conducted in the country since 1919-1920 quinquennially with expanded coverage and scope over the years.  The 15^th livestock Census was conducted with reference date 15.10.1992 while the 16^th one was conducted with reference date 15.10.1997. The report on the 16 th Census is under preparation.  Up to 1998-99, the scheme was under the Centrally Sponsored pattern of 50:50 ratio for the Centre and States.  From 1.4.1999 (1999-2000) this scheme has been converted into a Central Sector Scheme with 100% central grants to States and UTs. In order to finalise the instructions, methodology, schedule and time frame of work in respect of the 17^th livestock Census a Technical Committee has been set up on 17^th September 2002. Following a decision taken by the Planning Commission the Scheme of Livestock Census has been transferred to the Department of Animal Husbandry and Dairying.       Livestock Census consists of the following four parts namely: 

1.      Livestock Census of all bovine, ovine animals including dogs and Rabbits also, with bread-wise and District/Talky-wise Rural and Urban brake-up.

2.      Poultry all kinds.

3.      Agricultural Machinery and Implements.

4.      Fisheries all kinds. 

5. Market Intelligence and Price Analysis 

The DES also collects and  compiles wholesale and retail prices, international prices and market arrivals  of essential commodities on weekly/monthly basis from 700 centres and 87 centres respectively spread all over the country.  Out of these price quotations, about 216 quotations are being disseminated through Email to the Office of Economic Adviser, Ministry of Industry, for construction of wholesale price index numbers on weekly basis.  The price quotations collected are also disseminated in the form of weekly bulletins.  Besides, daily wholesale prices of some important agricultural products, in respect of Hapur, Hathras and Delhi are also being supplied to All India Radio for broadcasting.

6. Publications     

In order to disseminate various available agricultural statistics, etc. the Directorate of Economics and Statistics brings out a number of publications.  The list of the latest editions of these publications is given below: 

1.      Agricultural Situation in India-Monthly—

2.      Krishi Sameeksha (Hindi) –Monthly—

3.      Agricultural Wages in India.

4.      Farm Harvest Prices of Principal Crops in India.

5.      Indian Agricultural in Brief-27^th edition.

6.      Bulletin on Food Statistics.

7.      Year Book of Agro Economic Research Studies.

8.      Agricultural Statistics at A Glance 2002.

9.      All India Index Numbers of Area, Production and Yield of Principal

Crops.

10.  Land Use Statistics at A Glance.

11.  Indian Agriculture Ready Reckoner. 

12.  District-wise Area and Production of Crops in India.

13.  Index of Agricultural Production, Area and yield.

14.  Report and Data Base of Pilot Schemes on Major Fruits and Vegetables.

15.  Cost of Cultivation of Principal Crops.

16.  Agricultural Prices in India. 

7. Activities in North Eastern Region

The following schemes are being implemented in the North Eastern Region: 

·        Timely Reporting Scheme on Estimates of Area and Production of Principal Crops is being implemented in Assam.  An amount of Rs.1500 thousand has been provided during 2002-03. 

·        The scheme of  Improvement of Crop Statistics is also being implemented in Assam with an  allocation of Rs.500 thousand during 2002-03. 

·        The Scheme of Establishment of an Agency for Reporting of Agricultural Statistics is being implemented in Arunachal Pradesh, Nagaland and Sikkim with the allocation of Rs. 2000 thousand during 2002-03.

·        The scheme of Livestock Census is also being implemented in all North Eastern States with the allocation of Rs.1000 thouasnd during 2002-03.      The scheme on Studying the Cost of Cultivation of Principal Crops is also being implemented in Assam Agricultural University, Jorhat with the allocation of Rs11500 thouand during the year 2002-03.·        The scheme of Agro-Economic Research is also being implemented in Assam through Assam Agricultural University  with the allocation of Rs.3900 thousand during 2002-03.

PROGRAMMES  OF  NORTH-EASTERN  STATES
(Rs. in thousand) 

Support Pricing for Agricultural Commodities. 

The main objective of the Government’s price policy for agricultural produce is to ensure remunerative prices to the growers for their produce with a view to encouraging higher investment and production and to safeguard the interests of consumers by making available supplies at reasonable prices.  The price policy seeks to evolve a balanced and integrated price structure in the perspective of the overall needs of the economy. To achieve this end, the Government announces, each season, minimum support prices for major agricultural commodities and organizes purchase operations through public and cooperative agencies such as Food Corporation of India (Paddy, Wheat and Coarse Cereals), Jute Corporation of India(Jute). Cotton Corporation of India(Cotton), National Agricultural Cooperative Marketing Federation of India(NAFED)(Pulses and Oilseeds) and Tobacco Board(Tobacco) besides other agencies designated by the State Governments. 

The Government decides support prices for various agricultural commodities after taking into account the recommendations of the Commission for Agricultural Costs and Prices, views of State Governments and Central Ministries as well as such other relevant factors, which in the opinion of the Government are important for fixation of support prices. 

The Government has already announced Minimum Support Prices for Kharif Crops of 2002-03 Season. Keeping in view the recommendations of Commission for Agricultural Costs and Prices (CACP), the Minimum Support Prices (MSPs) of paddy, coarse grains (Jowar, Bajra, Maize and Ragi), Arhar, Cotton, Copra and Soyabean have been retained at last year’s level.  The MSPs of Moong, Urad, Sunflowerseed have been raised by Rs.10 per quintal. The MSP of Groundnut-in-shell has been increased by         Rs.15       per    quintal. As compared to previous season, the MSPs of Nigerseed and     Sesamum have been raised by Rs.20 and Rs.50 per quintal respectively. The MSP of Jute has been raised by Rs.40 per quintal as compared to  last year. In addition, the Government has announced Special Drought Relief Prices (SDRP) for kharif marketing season 2002-03 based on the recommendations of CACP which took in to account the losses suffered by farmers in un-irrigated areas and additional expenditure incurred by the farmers in irrigated areas. The SDRPs announced by the Government are intended to benefit farmers in drought hit areas. These range between Rs.5 and Rs.20  per quintal for major agricultural commodities. These prices do not form a part of MSP and would be by way of relief and not by way of any bonus. 

The price policy pursued by the Government has paid rich dividends by way of increased production, investment and also helped in generating exportable surpluses in respect of certain agricultural commodities. 

The MSPs fixed for major agricultural commodities in recent years alongwith  Special Drought Relief Prices for Kharif Crops of 2002-03 season are shown in  the enclosed statement.

The price policy for Rabi crops of 2002-03 to be marketed in 2003-04 season is, at present, under consideration of the Government.