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GOVERNMENT OF INDIA
MINISTRY OF AGRICULTURE & FARMERS WELFARE
DEPARTMENT OF AGRICULTURE & FARMERS WELFARE
RAJYA SABHA
UNSTARRED QUESTION NO. 3858
TO BE ANSWERED ON THE 27/03/2026
PRICE STABILISATION MECHANISMS FOR PLANTATION CROPS
3858. SHRI A. A. RAHIM:
Will the Minister of AGRICULTURE AND FARMERS WELFARE be pleased to state:
(a) whether the Ministry has conducted any assessment of price volatility and income distress faced by farmers
cultivating plantation and spice crops such as pepper, rubber and cardamom during the last five years:
(b) the details of the average farm-gate prices of these crops vis-à-vis the cost of cultivation during the same
period;
(c) whether any proposals or representations have been received from State Governments or farmers'
organisations seeking inclusion of these crops under MSP or assured procurement mechanism; and
(d) whether Government proposes to examine the feasibility of extending MSP or any alternative price-
stabilisation mechanism for pepper, rubber and cardamom?
ANSWER
THE MINISTER OF STATE FOR AGRICULTURE AND FARMERS WELFARE
(SHRI RAMNATH THAKUR)
(a): The prices of pepper, rubber and cardamom are determined in the open market based on demand and
supply. International prices also influence domestic prices. The National Sample Survey Office (NSSO),
Ministry of Statistics and Programme Implementation (MoSPI) conducted a Situation Assessment Survey
(SAS) of Agricultural Households during NSS 77th round (January, 2019-December, 2019) with reference to
the agricultural year July, 2018- June, 2019 in the rural areas of the country. According to the survey, the
estimated average monthly income per agricultural household increased from ₹6,426 in 2012-13 (NSS 70th
round) to ₹10,218 in 2018-19 (NSS 77th round). In respect of State of Kerala, it increased from ₹11,888 to
₹17,915 for the same period.
(b): The details of the average prices and production of pepper, cardamom and rubber over the last five years
are given at Annexure-I. The cost of cultivation/ production of these commodities is given at Annexure-II.
(c) & (d): Government of India fixes Minimum Support Prices (MSPs) for 22 mandated agricultural crops for
the country every year including Kerala, based on the recommendations of Commission for Agricultural Costs
& Prices (CACP), after considering the views of State Governments and Central Ministries/ Departments
concerned. Pepper, rubber and Cardamom are not mandated agricultural crops under MSP.
Ministry of Agriculture & Farmers Welfare implements Market Intervention Scheme (MIS) under
Pradhan Mantri Annadata Aay Sanrakshan Abhiyan (PM-AASHA) for procurement of agricultural and
horticultural commodities, which are perishable in nature and are not covered under the Price Support Scheme
(PSS). The objective of intervention is to protect the growers of these commodities from making distress sale
in the event of a bumper crop during the peak arrival period when the prices tend to fall below economic levels
and the cost of production. The condition is that there should be at least a 10 percent decrease in the ruling
market prices over the previous normal year. The scheme is implemented at the request of a State/ UT
government, which is ready to bear 50 percent of the loss (25 percent in case of North-Eastern States), if any,
incurred on its implementation.
Government has introduced a new component of Price Differential Payment (PDP) under Market
intervention scheme (MIS) from 2024-25 season for direct payment of the price difference between the Market
Intervention Price (MIP) and the selling price to the farmers of perishable crops. States/UTs have an option to
choose either to do physical procurement of the crop or to make the differential payment between the MIP &
Sale Price to the farmers.Annexure-I
Average prices and production of pepper, cardamom and rubber over the last five years
Year Farm Production Cardamom Production Yearly Production
Gate (000’MT) (Small)- All (000’MT) Average (000’MT)
Price- Black India Cardamom price Natural
Black Pepper weighted [Rs/ kg] Rubber
Pepper average Natural
(Local)- auction Rubber
Kerala price (RSS4
(Rs/kg) (Rs/kg) Grade)
2020-21 326.25 140.64 1553.99 33.95 - 715.00
2021-22 439.62 95.32 993.16 37.00 171.01 775.00
2022-23 471.67 117.07 987.17 36.00 156.52 839.00
2023-24 553.04 126.04 1542.75 35.00 155.72 857.00
2024-25 624.58 104.75 2452.17 31.00 199.85 875.00
2025-26 660.07 - 2467.29 - 195.47 -
(April to
February)
Source: Farm-gate price of pepper- Dte of Economics and Statistics (DES), Kerala, Price of
Cardamom- Spices Board, Kochi, Kerala/ Plantation Division, Department of Commerce and price
of Rubber- Rubber Board, Kottayam, Kerala/Plantation Division, Department of Commerce,
Production Data- (Cardamom and Black Pepper)-Horticulture Statistics Division, DA&FWAnnexure-II
Cost of Cultivation/ Production of Black pepper, Cardamom and Rubber
S.No. Particulars Cost
1. Black Pepper (Kerala)
a. Estimated cost of cultivation Rs. 2,22,191/ha
b. Estimated cost of production Rs. 453.50/kg
2. Small Cardamom (Kerala)
a. Total establishment cost for first two years Rs. 6,16,046/ha
b. Annual maintenance cost from 3rd year onwards Rs. 3,72,382/ha
3 Cost of Cultivation/ Production of Natural Rubber 105.59 Rs./kg
(2022-23) Third daily tapping(Kerala)
(All paid out costs of labour and material inputs, interest
on working capital and depreciation)
Source: Cost of Cultivation/ Production of Pepper- Directorate of Arecanut and Spices Development
(DASD), Calicut, Kerala, Cardamom- Spices Board’s website- https://www.indianspices.com and
Rubber- Rubber Board’s website- https://rubberboard.gov.in
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