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Government of India
Ministry of Agriculture & Farmers Welfare
12-February-2019 17:02 IST
Commission for Agricultural Costs and Prices (CACP)

 Commission for Agricultural Costs and Prices (CACP) in its Price Policy report for Kharif Crops for 2018-19 season has suggested bringing a legislation conferring on farmers the ‘Right to Sell at MSP’ to instill confidence among framers so that their produce is not sold/ procured below Minimum Support Price (MSP) and farmers are not exploited by traders.

 

 Government has increased MSPs substantially for all mandated crops including paddy for the season 2018-19. MSP of paddy (common) has been increased by Rs. 200 and fixed at Rs 1750 per quintal and paddy (grade A) has been increased by Rs 180 and fixed at Rs 1770 per quintal for 2018-19 season which provide adequate return over cost of production.The National Commission on Farmers (NCF) headed by Dr. M. S. Swaminathan has recommended that the MSP should be at least 50 percent more than the weighted average cost of production. However, when the National Policy for Farmers, 2007 was finalized, this recommendation of providing 50 per cent returns over cost of production was not included. Dr.  M. S. Swaminathan in his Report on NCF had discussed different dimensions of fixing MSPs, but while finalizing National Policy on Farmers, the then Government had accepted the current established methods.

 

The Union Budget for 2018-19 had announced the pre-determined principle to keep MSP at levels of one and half times the cost of production. Accordingly, Government has increased MSPs for all mandated crops with a return of at least 50 percent over cost of production for the season 2018-19. This decision of the Government was also a historic one as it redeemed the promise of fixing the MSPs at least at a level of 50 per cent return over cost of production. Details of cost, MSP and percent return over cost for the year 2017-18 and 2018-19 is given at Annexure.

 

Annexure

 

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

 

                                                                                                             (Rs/quintal)

Sl. No.

Commodity

2017-18

2018-19

KHARIF  CROPS

Cost

MSP

% Return over cost

Cost

MSP

% Return over cost

1

PADDY(Common)

1117

1550

38.8

1166

1750

50.1

 

             (Grade A) ^

 

1590

 

 

1770

 

2

JOWAR (Hybrid)

1556

1700

9.3

1619

2430

50.1

 

             (Maldandi) ^

 

1725

 

 

2450

 

3

BAJRA

949

1425

50.2

990

1950

97.0

4

MAIZE

1044

1425

36.5

1131

1700

50.3

5

RAGI

1861

1900

2.1

1931

2897

50.0

6

ARHAR(Tur)

3318

5450

64.3

3432

5675

65.4

7

MOONG

4286

5575

30.1

4650

6975

50.0

8

URAD

3265

5400

65.4

3438

5600

62.9

9

COTTON (Medium Staple) 

3276

4020

22.7

3433

5150

50.0

 

               (Long Staple) ^

 

4320

 

 

5450

 

10

GROUNDNUT IN SHELL

3159

4450

40.9

3260

4890

50.0

11

SUNFLOWER SEED

3481

4100

17.8

3592

5388

50.0

12

SOYABEEN

2121

3050

43.8

2266

3399

50.0

13

SESAMUM

4067

5300

30.3

4166

6249

50.0

14

NIGERSEED

3912

4050

3.5

3918

5877

50.0

 

RABI CROPS

 

 

 

 

 

 

1

WHEAT

817

1735

112.4

866

1840

112.5

2

BARLEY

845

1410

66.9

860

1440

67.4

3

GRAM

2461

4400

78.8

2637

4620

75.2

4

MASUR (LENTIL)

2366

4250

79.6

2532

4475

76.7

5

RAPESEED/MUSTARD

2123

4000

88.4

2212

4200

89.9

6

SAFFLOWER

3125

4100

31.2

3294

4945

50.1

7

TORIA ^

 

3900

 

 

4190

 

 

OTHER CROPS

 

 

 

 

 

 

1

COPRA (Milling)

4758

6500

36.6

5007

7511

50.0

 

               (Ball)^

 

6785

42.6

 

7750

 

2

DE-HUSKED COCONUT ^

 

1760

 

 

2030

 

3

JUTE

2160

3500

62.0

2267

3700

63.2

4

SUGARCANE

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 in Lok Sabha today.

 

*****

APS/RCS