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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 Narendra Singh Tomar in Rajya Sabha today.

 

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APS/SG/RC

 

 

 

Annexure I

 

Percentage increase in Cost of Production*

 

Sl. No. Commodity Variety 2016-17 2017-18 2018-19 2019-20
  KHARIF CROPS          
1

 

PADDY

 

Common 2.5 6.9 4.4 3.6
Grade ‘A’^
2

 

JOWAR

 

Hybrid 2.3 3.7 4.0 4.9
Maldandi^
3 BAJRA   3.6 2.6 4.3 9.4
4 RAGI   2.7 7.4 3.8 8.8
5 MAIZE   2.7 8.1 8.3 3.5
6 TUR(ARHAR)   0.1 2.4 3.4 5.9
7 MOONG   1.8 5.4 8.5 1.1
8 URAD   3.7 -8.9 5.3 1.1
9

 

COTTON

 

Medium Staple 4.9 13.4 4.8 2.0
Long Staple^
10 GROUNDNUT   1.7 -6.3 3.2 4.1
11 SUNFLOWER SEED   6.0 0.1 3.2 4.9
12 SOYABEAN Yellow 4.6 14.5 6.8 9.1
13 SESAMUM   1.4 -2.9 2.4 3.7
14 NIGERSEED   7.0 16.2 0.2 1.1
RABI CROPS          
1 WHEAT   1.5 2.5 6.0 6.6
2 BARLEY   5.2 3.6 1.8 6.9
3 GRAM   5.5 9.8 7.2 6.2
4 MASUR (LENTIL)   7.9 8.8 7.0 7.7
5 RAPESEED & MUSTARD   9.9 13.5 4.2 5.0
6 SAFFLOWER   -0.3 2.5 5.4 5.3

 

*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. Commodity Variety 2016-17 2017-18 2018-19 2019-20
KHARIF CROPS          
1 PADDY

 

Common 4.3 5.4 12.9 3.7
Grade’ A’ 4.1 5.3 11.3 3.7
2 JOWAR

 

Hybrid 3.5 4.6 42.9 4.9
Maldandi 3.8 4.5 42.3 4.9
3 BAJRA   4.3 7.1 36.8 2.6
4 RAGI   4.5 10.1 52.5 8.7
5 MAIZE   3.0 4.4 19.3 3.5
6 TUR(ARHAR)   9.2 7.9 4.1 2.2
7 MOONG   7.7 6.7 25.1 1.1
8 URAD   8.1 8.0 3.7 1.8
9 COTTON

 

Medium Staple 1.6 4.1 28.1 2.0
Long Staple 1.5 3.8 26.2 1.8
10 GROUNDNUT   4.7 5.5 9.9 4.1
11 SUNFLOWER SEED   3.9 3.8 31.4 4.9
12 SOYABEAN Yellow 6.7 9.9 11.4 9.1
13 SESAMUM   6.4 6.0 17.9 3.8
14 NIGERSEED   4.8 5.9 45.1 1.1
RABI CROPS          
1 WHEAT   6.6 6.8 6.1 4.6
2 BARLEY   8.2 6.4 2.1 5.9
3 GRAM   14.3 10.0 5.0 5.5
4 MASUR (LENTIL)   16.2 7.6 5.3 7.3
5 RAPESEED & MUSTARD   10.4 8.1 5.0 5.4
6 SAFFLOWER   12.1 10.8 20.6 5.5

 

 

 

 

 

Annexure II

 

Cost*, MSP and return over cost

                                                  (Rs. Per quintal)

Commodity 2018-19 2019-20 2020-21
KHARIF  CROPS Cost MSP % Return over Cost Cost MSP % Return over Cost Cost MSP % Return over Cost
PADDY(Common) 1166 1750 50 1208 1815 50 1245 1868 50
(Grade A) ^ 1770 1835   1888  
JOWAR (Hybrid) 1619 2430 50 1698 2550 50 1746 2620 50
(Maldandi) ^ 2450 2570   2640  
BAJRA 990 1950 97 1083 2000 85 1175 2150 83
RAGI 1931 2897 50 2100 3150 50 2194 3295 50
MAIZE 1131 1700 50 1171 1760 50 1213 1850 53
ARHAR(Tur) 3432 5675 65 3636 5800 60 3796 6000 58
MOONG 4650 6975 50 4699 7050 50 4797 7196 50
URAD 3438 5600 63 3477 5700 64 3660 6000 64
COTTON (Medium Staple) 3433 5150 50 3501 5255 50 3676 5515 50
(Long Staple) ^ 5450 5550   5825  
GROUNDNUT 3260 4890 50 3394 5090 50 3515 5275 50
SUNFLOWER SEED 3592 5388 50 3767 5650 50 3921 5885 50
SOYABEAN(Yellow) 2266 3399 50 2473 3710 50 2587 3880 50
SESAMUM 4166 6249 50 4322 6485 50 4570 6855 50
NIGERSEED 3918 5877 50 3960 5940 50 4462 6695 50
RABI CROPS      
WHEAT 866 1840 113 923 1925 109 960 1975 106
BARLEY 860 1440 67 919 1525 66 971 1600 65
GRAM 2637 4620 75 2801 4875 74 2866 5100 78
MASUR (LENTIL) 2532 4475 77 2727 4800 76 2864 5100 78
RAPESEED and MUSTARD 2212 4200 90 2323 4425 90 2415 4650 93
SAFFLOWER 3294 4945 50 3470 5215 50 3551 5327 50

 

*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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