MSP for Kharif Crops 

Government announces minimum support prices (MSPs) for 22 mandated crops and fair and remunerative price (FRP) for sugarcane on the basis of recommendations of the Commission for Agricultural Costs and Prices (CACP), after considering the views of State Governments and Central Ministries/Departments concerned and other relevant factors. The mandated crops are 14 crops of the kharif season viz. paddy, jowar, bajra, maize, ragi, arhar, moong, urad, groundnut-in-shell, soyabean, sunflower, sesamum, nigerseed and cotton; 6 rabi crops viz. wheat, barley, gram, masur(lentil), rapeseed/mustard and safflower and two other commercial crops viz. jute and copra. In addition, the MSPs of toria and de-husked coconut are fixed on the basis of the MSPs of rapeseed/mustard and copra, respectively.

Government has announced its historic decision on 04.07.2018 to fix MSP at a level of at least 150 per cent of the cost of production for kharif crops 2018-19 which redeems the promise made in the Union Budget for 2018-19.The MSPs fixed by Government, cost and returns over all-India weighted average cost of production of crops for 2017-18 and 2018-19 is at Annexure.Cost of production varies in different states on account of difference in levels of irrigation, resource endowment, farm mechanization, land holding size, yield of crops etc.

From time to time, some farmers and farmers’ organizations have been agitating and making certain demands like increase in Minimum Support Prices (MSPs) for agricultural crops and other agricultural policies.

Recent increase in MSP of Kharif crops at a level of at least 150 per cent of the cost of production will ensure remunerative price to farmers. Government has taken several steps to provide remunerative prices to farmers for their produce which include implementing e-National Agriculture Market and framing model Agricultural Produce and Livestock Marketing (Promotion and Facilitation) Act, 2017, promoting Farmers Producer Organization (FPO) and stepping up the levels of procurement for pulses and oilseeds through the Price Support Scheme (PSS). PSS is implemented at the request of the state government concerned which agrees to exempt the procured commodities from levy of mandi tax & other state duties. The basic objectives of PSS are to provide remunerative prices to the growers for their produce with a view to encourage higher investment and production and to safeguard the interest of the consumers by making available supplies at reasonable price with low cost of intermediation. Under PSS, payments to the farmers are made strictly through Real Time Gross Settlement (RTGS)/National Electronic Fund Transfer (NEFT) and account payee cheque by the procuring agencies within three days of purchase of their produce.

Cost*, Minimum Support Prices (MSPs) and Return over Cost


  Commodity 2017-18 2018-19
Sl. No. KHARIF  CROPS Cost MSP % Return over cost Cost MSP % Return over Cost
1 PADDY(Common) 1117 1550 38.76 1166 1750 50.09
  (Grade A) ^ 1590 1770
2 JOWAR (Hybrid) 1556 1700 9.25 1619 2430 50.09
  (Maldandi) ^ 1725 2450
3 BAJRA 949 1425 50.16 990 1950 96.97
4 MAIZE 1044 1425 36.49 1131 1700 50.31
5 RAGI 1861 1900 2.10 1931 2897 50.01
6 ARHAR(Tur) 3318 5450 64.26 3432 5675 65.36
7 MOONG 4286 5575 30.07 4650 6975 50.00
8 URAD 3265 5400 65.39 3438 5600 62.89
9 COTTON (Medium Staple) 3276 4020 22.71 3433 5150 50.01
  (Long Staple) ^ 4320 5450
10 GROUNDNUT IN SHELL 3159 4450 40.87 3260 4890 50.00
11 SUNFLOWER SEED 3481 4100 17.78 3592 5388 50.01
12 SOYABEEN 2121 3050 43.80 2266 3399 50.01
13 SESAMUM 4067 5300 30.32 4166 6249 50.01
14 NIGERSEED 3912 4050 3.53 3918 5877 50.01


*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 (GradeA), Jowar(Maldandi) & Cotton (long staple).

This Information was given by the Minister of State for Ministry of Agriculture & Farmers Welfare Shri Gajendra Singh Shekhawat