Cabinet approves enhanced Minimum Support Prices (MSP) for Rabi Crops of 2018-19 Season to be marketed in 2019-20 Season

166
SHARE
The Prime Minister, Shri Narendra Modi chairing 23rd interaction through PRAGATI - the ICT-based, multi-modal platform for Pro-Active Governance and Timely Implementation, in New Delhi on November 22, 2017.

Cabinet approves enhanced Minimum Support Prices (MSP) for Rabi Crops of 2018-19 Season to be marketed in 2019-20 Season.New Delhi: Giving a boost to farmers’ income, the Cabinet Committee on Economic Affairs chaired by the Prime Minister Shri Narendra Modi has approved the increase in the Minimum Support Prices (MSPs) for all Rabi crops for 2018-19 to be marketed in 2019-20 season.  The farmer friendly initiative will give additional return to the farmers of Rs 62,635 crore by way of increasing MSP of notified crops to at least 50 per cent return over cost of production and will aid in doubling farmers’ income.
The increase in the MSPs of wheat has been raised by Rs.105 per quintal, safflower by Rs.845 per quintal, barley by Rs.30 per quintal, masur (lentil) by Rs.225 per quintal, gram by Rs.220 per quintal and rapeseed & mustard by Rs.200 per quintal is another major step in this regard.

Details:
The MSPs fixed by the government for wheat, barley, gram, masur, rapeseed & mustard and safflower are much higher than the cost of production.For wheat the cost of production is Rs 866 per quintal and MSP is Rs 1840 per quintal which gives a return of 112.5 per cent over cost of production;for barley the cost of production is Rs 860 per quintal and MSP is Rs 1440 per quintal giving a return of 67.4 per cent;for gram cost of production is Rs 2637 per quintal and MSP is Rs 4620 per quintal giving a return of 75.2 per cent;for masur cost of production is Rs 2532 per quintal and MSP is Rs 4475 per quintal giving a return of 76.7 per cent;for rapeseed & mustard the cost of production is Rs 2212 per quintal and MSP is Rs 4200 per quintal giving a return of 89.9 per cent andfor safflower the cost of production is Rs 3294 per quintal and MSP is Rs 4945 per quintal giving a return of 50.1 per cent.
The Minimum Support Prices for all rabi crops of 2018-19 season to be marketed in 2019-20 is as follows:

Crop
MSP
MSP
Cost of production
2018-19 (Rs/quintal)
Increase in MSP
Return over cost*
(in per cent)
2017-18
2018-19
(Rs/ quintal)
(Rs/ quintal)
Absolute
%
Wheat
1735
1840
866
105
6.1
112.5
Barley
1410
1440
860
30
2.1
67.4
Gram
4400
4620
2637
220
5.0
75.2
Masur (Lentil)
4250
4475
2532
225
5.3
76.7
Rapeseed & Mustard
4000
4200
2212
200
5.0
89.9
Safflower
4100
4945
3294
845
20.6
50.1
*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.

Background:

With the new Umbrella Scheme “Pradhan Mantri Annadata Aay SanraksHan Abhiyan’ (PM-AASHA) announced by the government there is a robust mechanism available to enable farmers realize the MSP in fuller measure. The Umbrella 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. Government has decided to give additional guarantee of Rs.16,550 crore making the total government guarantee Rs. 45,550 crore. In addition to this, budget provision for procurement operations has also been increased and Rs. 15,053 crore is sanctioned for the implementation of PM-AASHA. Central and State procurement agencies like Food Corporation of India, National Agricultural Cooperative Marketing Federation of India Limited, Small Farmers Agri –Business Consortium would continue to provide price support to farmers for the Rabi crops.

Comments

comments