Shortcoming in MSP 

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Government fixes Minimum Support Prices (MSPs) of 22 mandated crops and Fair & Remunerative Prices (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 & other relevant factors.

The Union Budget for 2018-19 had announced the pre-determined principle to keep MSP at levels of one and half times the cost of production. Accordingly, Government has increased the Minimum Support Prices (MSPs) for all notified Kharif, Rabi and other commercial crops with a return of at least 50 percent of cost of production for the season 2018-19. This decision of the Government was also a historic one as it redeemed the promise of fixing the MSPs at least at a level of 50 per cent return over cost of production. Details of MSP, cost and percent return over cost for 2017-18 and 2018-19 is given at Annexure.

The Government is working on a new market architecture, so as to ensure that farmers get remunerative prices on their produce. These include setting up of Gramin Agricultural Markets (GrAMs) so as to promote 22,000 number of retail markets in close proximity of farm gate; competitive and transparent wholesale trade at APMC through           e-NAM; and a robust and pro-farmer export policy. The recently launched Umbrella Scheme “Pradhan Mantri Annadata Aay SanraksHan Abhiyan (PM-AASHA)” provides for a holistic arrangement for assurance of a remunerative and stable price environment for growers /farmers to increase agriculture production and productivity. This Umbrella Scheme comprises Price Support Scheme (PSS) for pulses & oilseeds, Price Deficiency Payment Scheme (PDPS) and Pilot of Private Procurement & Stockist Scheme (PPSS) for oilseeds to ensure MSP to the farmers.

Annexure

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

    (Rs. per quintal)                   

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 SOYABEAN 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)

This information was given by Minister of State for Ministry of Agriculture & Farmers Welfare Shri Parshottam Rupala

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