Ministry of Agriculture & Farmers Welfare

Production Cost and MSP of Various Crops

Posted On: 23 SEP 2020 1:47PM by PIB Delhi

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.

 

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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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