Increase in MSP

Government fixes Minimum Support Prices (MSPs) of 22 mandated Kharif and Rabi crops and Fair & Remunerative Prices (FRP) for Sugarcane on the basis of recommendations of Commission for Agricultural Costs & Prices (CACP), after considering the views of State Governments and Central Ministries/Departments concerned & other relevant factors. In addition, MSP for Toria and De-Husked coconut is also fixed on the basis of MSPs of Rapeseed/Mustard and Copra respectively.

Government generally increases the MSPs of all notified crops which provide adequate return over cost of production. Government has increased MSPs substantially for all mandated crops for the season 2018-19This decision of the Government was a historic one as it fulfills the commitment to the farmers to provide 50 per cent return over cost of production for the first time for all mandated crops. Details of MSP, cost and percent return over cost for 2016-17, 2017-18 & 2018-19 is given at Annexure.

 

While recommending MSPs, CACP considers a host of factors including all India weighted average cost of production of crops. The costs considered are comprehensive and include all paid out costs such as those incurred on account of hired human labour, bullock labour/machine labour, rent paid for leased in land, expenses incurred in cash and kind on use of material inputs like seeds, fertilizers, manures, irrigation charges, depreciation on implements and farm buildings, interest on working capital, diesel/electricity for operation of pump sets etc, miscellaneous expenses and imputed value of family labour. The MSPs fixed by Government for most of the crops provide atleast a return of 50 per cent over cost of production for the year 2018-19.

 

Annexure

 

Annexure referred to in reply to part (a) of Lok Sabha Unstarred Question No.227 due for reply on 11.12.2018.

 

        Cost*, Minimum Support Price (MSP) and percent return over cost                    (Rs/quintal)

Sl. No. Commodity 2016-17 2017-18 2018-19
KHARIF  CROPS Cost MSP % Return over cost Cost MSP % Return over cost Cost MSP % Return over cost
1 PADDY(Common) 1045 1470 40.7 1117 1550 38.8 1166 1750 50.1
               (Grade A) ^   1510     1590     1770  
2 JOWAR (Hybrid) 1501 1625 8.3 1556 1700 9.3 1619 2430 50.1
               (Maldandi) ^   1650     1725     2450  
3 BAJRA 925 1330 43.8 949 1425 50.2 990 1950 97.0
4 MAIZE 966 1365 41.3 1044 1425 36.5 1131 1700 50.3
5 RAGI 1733 1725 -0.5 1861 1900 2.1 1931 2897 50.0
6 ARHAR(Tur) 3241 5050 55.8 3318 5450 64.3 3432 5675 65.4
7 MOONG 4065 5225 28.5 4286 5575 30.1 4650 6975 50.0
8 URAD 3584 5000 39.5 3265 5400 65.4 3438 5600 62.9
9 COTTON (Medium Staple) 2889 3860 33.6 3276 4020 22.7 3433 5150 50.0
                (Long Staple) ^   4160     4320     5450  
10 GROUNDNUT IN SHELL 3371 4220 25.2 3159 4450 40.9 3260 4890 50.0
11 SUNFLOWER SEED 3479 3950 13.5 3481 4100 17.8 3592 5388 50.0
12 SOYABEEN 1852 2775 49.8 2121 3050 43.8 2266 3399 50.0
13 SESAMUM 4188 5000 19.4 4067 5300 30.3 4166 6249 50.0
14 NIGERSEED 3366 3825 13.6 3912 4050 3.5 3918 5877 50.0
  RABI CROPS                  
1 WHEAT 797 1625 103.9 817 1735 112.4 866 1840 112.5
2 BARLEY 816 1325 62.4 845 1410 66.9 860 1440 67.4
3 GRAM 2241 4000 78.5 2461 4400 78.8 2637 4620 75.2
4 MASUR (LENTIL) 2174 3950 81.7 2366 4250 79.6 2532 4475 76.7
5 RAPESEED/MUSTARD 1871 3700 97.8 2123 4000 88.4 2212 4200 89.9
6 SAFFLOWER 3049 3700 21.4 3125 4100 31.2 3294 4945 50.1
7 TORIA ^   3560     3900     4190  
  OTHER CROPS                  
1 COPRA (Milling) 4676 5950 27.2 4758 6500 36.6 5007 7511 50.0
                 (Ball)^   6240     6785 42.6   7750  
2 DE-HUSKED COCONUT ^   1600     1760   2030  
3 JUTE 2125 3200 50.6 2160 3500 62.0 2267 3700 63.2
4 SUGARCANE 140 230 64.3 152 255 67.8 155 275 77.4

 

* Includes all paid out costs such as those incurred on account of hired human labour, bullock labour/machine labour, rent paid for leased in land, expenses incurred on use of material inputs like seeds, fertilizers, manures, irrigation charges, depreciation on implements and farm buildings,interest on working capital, diesel/electricity for operation of pump sets etc, miscellaneous expenses and imputed value of family labour.

^ Cost data are not separately compiled for Paddy(Grade A), Jowar (Maldandi), Cotton (Long staple), Toria, Copra(ball) and De-husked coconut.

 

 

This information was given by Minister of State for Ministry of Agriculture & Farmers Welfare Shri Gajendra Singh Shekhawat.

 

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APS/RCS

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