Production Cost and MSP of Various Crops

The details of percentage increase of cost of production and Minimum Support Price (MSP) of mandated kharif and rabi crops from 2016 to 2020 are given at Annexure I.

National Commission on Farmers (NCF) headed by Dr. M.S. Swaminathan had recommended that the Minimum Support Price (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 by the then Government, this recommendation of providing 50 per cent returns over cost of production was not included.

The Union Budget for 2018-19 had announced the pre-determined principle to keep MSP at a level of one and half times of the cost of production. Accordingly, Government has increased the MSPs for all mandated Kharif, Rabi and other commercial crops with a return of atleast 50 per cent over all India weighted average cost of production from agricultural year 2018-19. In line with the same principle, Government has announced the increase in MSP for all mandated kharif crops of year 2020-21 on 1st June, 2020 and for all mandated rabi crops of year 2020-21 on 21st September 2020.  The details of MSP, cost of production and return over cost of production for all mandated kharif and rabi crops from 2018-19 to 2020-21 are given at Annexure II.

 

This information was given in a written reply by the Union Minister of Agriculture and Farmers Welfare Shri Narendra Singh Tomar in Rajya Sabha today.

 

****

 

APS/SG/RC

 

 

 

Annexure I

 

Percentage increase in Cost of Production*

 

Sl. No.CommodityVariety2016-172017-182018-192019-20
 KHARIF CROPS     
1

 

PADDY

 

Common2.56.94.43.6
Grade ‘A’^
2

 

JOWAR

 

Hybrid2.33.74.04.9
Maldandi^
3BAJRA 3.62.64.39.4
4RAGI 2.77.43.88.8
5MAIZE 2.78.18.33.5
6TUR(ARHAR) 0.12.43.45.9
7MOONG 1.85.48.51.1
8URAD 3.7-8.95.31.1
9

 

COTTON

 

Medium Staple4.913.44.82.0
Long Staple^
10GROUNDNUT 1.7-6.33.24.1
11SUNFLOWER SEED 6.00.13.24.9
12SOYABEANYellow4.614.56.89.1
13SESAMUM 1.4-2.92.43.7
14NIGERSEED 7.016.20.21.1
RABI CROPS     
1WHEAT 1.52.56.06.6
2BARLEY 5.23.61.86.9
3GRAM 5.59.87.26.2
4MASUR (LENTIL) 7.98.87.07.7
5RAPESEED & MUSTARD 9.913.54.25.0
6SAFFLOWER -0.32.55.45.3

 

*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 (Grade A), Jowar (Maldandi), Cotton (long staple) and Copra (ball).

 

 

 

Annexure I Contd.

 

Percentage (%) increase of MSP

 

Sl. No.CommodityVariety2016-172017-182018-192019-20
KHARIF CROPS     
1PADDY

 

Common4.35.412.93.7
Grade’ A’4.15.311.33.7
2JOWAR

 

Hybrid3.54.642.94.9
Maldandi3.84.542.34.9
3BAJRA 4.37.136.82.6
4RAGI 4.510.152.58.7
5MAIZE 3.04.419.33.5
6TUR(ARHAR) 9.27.94.12.2
7MOONG 7.76.725.11.1
8URAD 8.18.03.71.8
9COTTON

 

Medium Staple1.64.128.12.0
Long Staple1.53.826.21.8
10GROUNDNUT 4.75.59.94.1
11SUNFLOWER SEED 3.93.831.44.9
12SOYABEANYellow6.79.911.49.1
13SESAMUM 6.46.017.93.8
14NIGERSEED 4.85.945.11.1
RABI CROPS     
1WHEAT 6.66.86.14.6
2BARLEY 8.26.42.15.9
3GRAM 14.310.05.05.5
4MASUR (LENTIL) 16.27.65.37.3
5RAPESEED & MUSTARD 10.48.15.05.4
6SAFFLOWER 12.110.820.65.5

 

 

 

 

 

Annexure II

 

Cost*, MSP and return over cost

                                                  (Rs. Per quintal)

Commodity2018-192019-202020-21
KHARIF  CROPSCostMSP% Return over CostCostMSP% Return over CostCostMSP% Return over Cost
PADDY(Common)116617505012081815501245186850
(Grade A) ^17701835 1888 
JOWAR (Hybrid)161924305016982550501746262050
(Maldandi) ^24502570 2640 
BAJRA99019509710832000851175215083
RAGI193128975021003150502194329550
MAIZE113117005011711760501213185053
ARHAR(Tur)343256756536365800603796600058
MOONG465069755046997050504797719650
URAD343856006334775700643660600064
COTTON (Medium Staple)343351505035015255503676551550
(Long Staple) ^54505550 5825 
GROUNDNUT326048905033945090503515527550
SUNFLOWER SEED359253885037675650503921588550
SOYABEAN(Yellow)226633995024733710502587388050
SESAMUM416662495043226485504570685550
NIGERSEED391858775039605940504462669550
RABI CROPS   
WHEAT866184011392319251099601975106
BARLEY860144067919152566971160065
GRAM263746207528014875742866510078
MASUR (LENTIL)253244757727274800762864510078
RAPESEED and MUSTARD221242009023234425902415465093
SAFFLOWER329449455034705215503551532750

 

*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 (Grade A), Jowar (Maldandi), Cotton (long staple) and Copra (ball).

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