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
|Sl. No.||KHARIF CROPS||Cost||MSP||% Return over cost||Cost||MSP||% Return over Cost|
|(Grade A) ^||1590||1770|
|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|
*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