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HIKE IN MSP

New Delhi: Government fixes Minimum Support Prices (MSPs) of 22 mandated agricultural crops and Fair & Remunerative Price (FRP) for Sugarcane on the basis of recommendations of Commission for Agricultural Costs & Prices (CACP), after considering the views of State Governments and Central Ministries/Departments concerned and other relevant factors. In addition, MSP for Toria and De-Husked coconut is also fixed on the basis of MSPs of Rapeseed/Mustard and Copra respectively. The Union Budget for 2018-19 had announced the pre-determined principle to keep MSPs at levels of one and half times the cost of production for all mandated crops. Accordingly, Government has increased MSPs for all mandated agricultural crops for the season 2018-19Details of cost, MSP and percent return over cost for the year 2017-18 & 2018-19 is at Annexure I. This decision of the Government was a historic one as it fulfills the commitment to the farmers to provide 50 per cent return over cost of production for the first time.

Government is committed to farmers welfare and towards this objective it has changed its strategy from being production centric to an income centric one. The above MSP policy is another progressive step forward in a series of reforms that the Government has been rolling out for the last 4 years, committed as it is to doubling farmers’ income by 2022 and improving the welfare substantively.

Region specific parameters are kept in view by the CACP while recommending MSP for agricultural crops.  Since the cost of production varies in different States on account of differences in levels of irrigation, resource endowment, farm mechanization, land holding size etc., CACP uses all-India weighted average cost of production while making its recommendations and recommends uniform MSP which is applicable to all states. Details of State-wise cost of production for the year 2018-19 is given at Annexure II. As per the existing arrangements, procurement is made of the crops for which MSPs are announced through Central and State agencies. In so far as cereals/nutri cereals are concerned, they are procured through FCI and decentralized procurement system mainly for distribution under the public distribution system (PDS), for welfare schemes and buffer stocking for food security. Government implements Price Support Scheme (PSS) for   procurement of  oilseeds,    pulses  and    cotton    through     Central  Nodal Agencies  at  MSP  declared   by   the    Government.     A n ew c Umbrella   Scheme ‘Pradhan Mantri Annadata Aay

SanraksHan Abhiyan’ (PM-AASHA) has been announced by the government. The scheme consists of three sub-schemes i.e. Price Support Scheme (PSS), Price Deficiency Payment Scheme (PDPS) and Private Procurement & Stockist Scheme (PPSS) on a pilot basis.

The payments to the farmers are made through Real Time Gross settlement (RTGS)/ National Electronic Fund Transfer (NEFT) and account payee cheque by the procuring agencies. However, if producer/farmers gets better price in comparison to MSP, they are free to sell their produce in open market.

 

Annexure I

Annexure referred to in reply to part (a) to (c) of Lok Sabha Unstarred Question No.14 due for reply on 11.12.2018.

 

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

 (Rs/Qtl)

                  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
2 JOWAR (Hybrid) 1556 1700 9.3 1619 2430 50.1
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
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
OTHER CROPS
1 COPRA (Milling) 4758 6500 36.6 5007 7511 50.0
2 JUTE 2160 3500 62.0 2267 3700 63.2
3 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.

# Fair and Remunerative Price (FRP)

Annexure-II

Annexure referred to in reply to part (d)&(e) of Lok Sabha Unstarred Question No. 14 due for reply on 11.12.2018
(Rs../Qtl.)
Year 2018-19
Crop Paddy Jowar Bajra Maize Ragi Arhar (Tur) Moong Urad Cotton Groundnut Soyabean Sunflower Sesamum Nigerseed Wheat Barley Gram Masur Rapeseed/

Mustard

Safflower
MSP 1750 2430 1950 1700 2897 5675 6975 5600 5150 4890 3399 5388 6249 5877 1840 1440 4620 4475 4200 4945
State Cost*
Andhra

Pradesh

1067 1302 803 4552 3411 1860 3562 2757 3667 5752 3245
Assam 1259 4195
Bihar 1065 814 972 1951 1904
Chhattisgarh 1002 2567 2679 2443
Gujarat 1080 982 1819 3772 3018 3364 5912 1122 2140
Haryana 1068 1085 3114 783 1788
Himachal Pradesh 1071 1526 1485
Jharkhand 1369 915 1149
Karnataka 1095 1936 1555 1010 2139 3276 4724 3272 4767 3682 3064 1992
Kerala 1342
Madhya

Pradesh

1306 1412 1011 2704 2812 3653 1984 3685 845 2402 2281 1475
Maharashtra 2102 1685 2119 1415 2097 3693 6688 5697 3990 4253 2777 2988 1717 2942 4438
Odisha 1382 1159 4304 4497 4700 4056 3543 5427 3918
Punjab 702 961 3304 654
Rajasthan 1410 867 1612 4587 4927 2656 1554 2378 5205 903 850 2277 2269
Tamil Nadu 1174 1147 995 1111 1471 3921 4152 4342 4240 5825
Uttar Pradesh 1119 811 1279 3320 4004 4516 917 881 3362 3103 2315
Uttarakhand 1012 1050 913
West Bengal 1379 2823 2626 2922
All India 1166 1619 990 1131 1931 3432 4650 3438 3433 3260 2266 3592 4166 3918 866 860 2637 2532 2212 3294

 

This information was given by  Minister of State for Ministry of Agriculture & Farmers Welfare Gajendra Singh Shekhawat.

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