Increase in MSP for Agri products in India

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Agriculture in India
Agriculture in India

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.Commodity2016-172017-182018-19
KHARIF  CROPSCostMSP% Return over costCostMSP% Return over costCostMSP% Return over cost
1PADDY(Common)1045147040.71117155038.81166175050.1
              (Grade A) ^ 1510  1590  1770 
2JOWAR (Hybrid)150116258.3155617009.31619243050.1
              (Maldandi) ^ 1650  1725  2450 
3BAJRA925133043.8949142550.2990195097.0
4MAIZE966136541.31044142536.51131170050.3
5RAGI17331725-0.5186119002.11931289750.0
6ARHAR(Tur)3241505055.83318545064.33432567565.4
7MOONG4065522528.54286557530.14650697550.0
8URAD3584500039.53265540065.43438560062.9
9COTTON (Medium Staple) 2889386033.63276402022.73433515050.0
               (Long Staple) ^ 4160  4320  5450 
10GROUNDNUT IN SHELL3371422025.23159445040.93260489050.0
11SUNFLOWER SEED3479395013.53481410017.83592538850.0
12SOYABEEN1852277549.82121305043.82266339950.0
13SESAMUM4188500019.44067530030.34166624950.0
14NIGERSEED3366382513.6391240503.53918587750.0
 RABI CROPS         
1WHEAT7971625103.98171735112.48661840112.5
2BARLEY816132562.4845141066.9860144067.4
3GRAM2241400078.52461440078.82637462075.2
4MASUR (LENTIL)2174395081.72366425079.62532447576.7
5RAPESEED/MUSTARD1871370097.82123400088.42212420089.9
6SAFFLOWER3049370021.43125410031.23294494550.1
7TORIA ^ 3560  3900  4190 
 OTHER CROPS         
1COPRA (Milling)4676595027.24758650036.65007751150.0
                (Ball)^ 6240  678542.6 7750 
2DE-HUSKED COCONUT ^ 1600  1760 2030 
3JUTE2125320050.62160350062.02267370063.2
4SUGARCANE14023064.315225567.815527577.4

 * 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.