|| Shree Mumba Devi Prasanna ||


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28 Mar 2024
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Crops


India increases MSP for Kharif crops

India increases MSP for Kharif crops

Indian Government announces minimum support prices (MSPs) for 22 mandated crops and fair and remunerative price (FRP) for sugarcane on the basis of recommendations of the Commission for Agricultural Costs and Prices (CACP), after considering the views of State Governments and Central Ministries/Departments concerned and other relevant factors.

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NEW DELHI, 03 August 2018 : Indian Government announces minimum support prices (MSPs) for 22 mandated crops and fair and remunerative price (FRP) for sugarcane on the basis of recommendations of the Commission for Agricultural Costs and Prices (CACP), after considering the views of State Governments and Central Ministries/Departments concerned and other relevant factors.

The mandated crops are 14 crops of the kharif season viz. paddy, jowar, bajra, maize, ragi, arhar, moong, urad, groundnut-in-shell, soyabean, sunflower, sesamum, nigerseed and cotton; 6 rabi crops viz. wheat, barley, gram, masur(lentil), rapeseed/mustard and safflower and two other commercial crops viz. jute and copra.

In addition, the MSPs of toria and de-husked coconut are fixed on the basis of the MSPs of rapeseed/mustard and copra, respectively. 

Government has announced its historic decision on 04.07.2018 to fix MSP at a level of at least 150 per cent of the cost of production for kharif crops 2018-19 which redeems the promise made in the Union Budget for 2018-19.The MSPs fixed by Government, cost and returns over all-India weighted average cost of production of crops for 2017-18 and 2018-19 is at Annexure.

Cost of production varies in different states on account of difference in levels of irrigation, resource endowment, farm mechanization, land holding size, yield of crops etc. 

From time to time, some farmers and farmers’ organizations have been agitating and making certain demands like increase in Minimum Support Prices (MSPs) for agricultural crops and other agricultural policies. 

Recent increase in MSP of Kharif crops at a level of at least 150 per cent of the cost of production will ensure remunerative price to farmers. Government has taken several steps to provide remunerative prices to farmers for their produce which include implementing e-National Agriculture Market and framing model Agricultural Produce and Livestock Marketing (Promotion and Facilitation) Act, 2017, promoting Farmers Producer Organization (FPO) and stepping up the levels of procurement for pulses and oilseeds through the Price Support Scheme (PSS).

PSS is implemented at the request of the state government concerned which agrees to exempt the procured commodities from levy of mandi tax & other state duties. The basic objectives of PSS are to provide remunerative prices to the growers for their produce with a view to encourage higher investment and production and to safeguard the interest of the consumers by making available supplies at reasonable price with low cost of intermediation.

Under PSS, payments to the farmers are made strictly through Real Time Gross Settlement (RTGS)/National Electronic Fund Transfer (NEFT) and account payee cheque by the procuring agencies within three days of purchase of their produce.

ANNEXURE 

Annexure referred to in reply to part (a) and (b) of Rajya Sabha Unstarred Question No. 1934 due for reply on 03.08.2018.

Cost*, Minimum Support Prices (MSPs) and Return over Cost

                                                                                                                        (Rs/quintal)

 

Commodity

2017-18

2018-19

Sl. No.

KHARIF  CROPS

Cost

MSP

% Return over cost

Cost

MSP

% Return over Cost

1

PADDY(Common)

1117

1550

38.76

1166

1750

50.09

 

(Grade A) ^

 

1590

 

 

1770

 

2

JOWAR (Hybrid)

1556

1700

9.25

1619

2430

50.09

 

(Maldandi) ^

 

1725

 

 

2450

 

3

BAJRA

949

1425

50.16

990

1950

96.97

4

MAIZE

1044

1425

36.49

1131

1700

50.31

5

RAGI

1861

1900

2.10

1931

2897

50.01

6

ARHAR(Tur)

3318

5450

64.26

3432

5675

65.36

7

MOONG

4286

5575

30.07

4650

6975

50.00

8

URAD

3265

5400

65.39

3438

5600

62.89

9

COTTON (Medium Staple)

3276

4020

22.71

3433

5150

50.01

 

(Long Staple) ^

 

4320

 

 

5450

 

10

GROUNDNUT IN SHELL

3159

4450

40.87

3260

4890

50.00

11

SUNFLOWER SEED

3481

4100

17.78

3592

5388

50.01

12

SOYABEEN

2121

3050

43.80

2266

3399

50.01

13

SESAMUM

4067

5300

30.32

4166

6249

50.01

14

NIGERSEED

3912

4050

3.53

3918

5877

50.01

 *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 & imputed value of family labour.

^ Cost is not separately compiled for Paddy (GradeA), Jowar(Maldandi) & Cotton (long staple).

 


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