The details of percentage increase of cost of production and Minimum Support Price (MSP) of mandated kharif and rabi crops from 2016 to 2020 are given at Annexure I.
National Commission on Farmers (NCF) headed by Dr. M.S. Swaminathan had recommended that the Minimum Support Price (MSP) should be at least 50 percent more than the weighted average cost of production. However, when the National Policy for Farmers, 2007 was finalized by the then Government, this recommendation of providing 50 per cent returns over cost of production was not included.
The Union Budget for 2018-19 had announced the pre-determined principle to keep MSP at a level of one and half times of the cost of production. Accordingly, Government has increased the MSPs for all mandated Kharif, Rabi and other commercial crops with a return of atleast 50 per cent over all India weighted average cost of production from agricultural year 2018-19. In line with the same principle, Government has announced the increase in MSP for all mandated kharif crops of year 2020-21 on 1st June, 2020 and for all mandated rabi crops of year 2020-21 on 21st September 2020. The details of MSP, cost of production and return over cost of production for all mandated kharif and rabi crops from 2018-19 to 2020-21 are given at Annexure II.
This information was given in a written reply by the Union Minister of Agriculture and Farmers Welfare Shri Narendra Singh Tomar in Rajya Sabha today.
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APS/SG/RC
Annexure I
Percentage increase in Cost of Production*
| Sl. No. | Commodity | Variety | 2016-17 | 2017-18 | 2018-19 | 2019-20 |
| KHARIF CROPS | ||||||
| 1
|
PADDY
|
Common | 2.5 | 6.9 | 4.4 | 3.6 |
| Grade ‘A’^ | – | – | – | – | ||
| 2
|
JOWAR
|
Hybrid | 2.3 | 3.7 | 4.0 | 4.9 |
| Maldandi^ | – | – | – | – | ||
| 3 | BAJRA | 3.6 | 2.6 | 4.3 | 9.4 | |
| 4 | RAGI | 2.7 | 7.4 | 3.8 | 8.8 | |
| 5 | MAIZE | 2.7 | 8.1 | 8.3 | 3.5 | |
| 6 | TUR(ARHAR) | 0.1 | 2.4 | 3.4 | 5.9 | |
| 7 | MOONG | 1.8 | 5.4 | 8.5 | 1.1 | |
| 8 | URAD | 3.7 | -8.9 | 5.3 | 1.1 | |
| 9
|
COTTON
|
Medium Staple | 4.9 | 13.4 | 4.8 | 2.0 |
| Long Staple^ | – | – | – | – | ||
| 10 | GROUNDNUT | 1.7 | -6.3 | 3.2 | 4.1 | |
| 11 | SUNFLOWER SEED | 6.0 | 0.1 | 3.2 | 4.9 | |
| 12 | SOYABEAN | Yellow | 4.6 | 14.5 | 6.8 | 9.1 |
| 13 | SESAMUM | 1.4 | -2.9 | 2.4 | 3.7 | |
| 14 | NIGERSEED | 7.0 | 16.2 | 0.2 | 1.1 | |
| RABI CROPS | ||||||
| 1 | WHEAT | 1.5 | 2.5 | 6.0 | 6.6 | |
| 2 | BARLEY | 5.2 | 3.6 | 1.8 | 6.9 | |
| 3 | GRAM | 5.5 | 9.8 | 7.2 | 6.2 | |
| 4 | MASUR (LENTIL) | 7.9 | 8.8 | 7.0 | 7.7 | |
| 5 | RAPESEED & MUSTARD | 9.9 | 13.5 | 4.2 | 5.0 | |
| 6 | SAFFLOWER | -0.3 | 2.5 | 5.4 | 5.3 |
*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 (Grade A), Jowar (Maldandi), Cotton (long staple) and Copra (ball).
Annexure I Contd.
Percentage (%) increase of MSP
| Sl. No. | Commodity | Variety | 2016-17 | 2017-18 | 2018-19 | 2019-20 |
| KHARIF CROPS | ||||||
| 1 | PADDY
|
Common | 4.3 | 5.4 | 12.9 | 3.7 |
| Grade’ A’ | 4.1 | 5.3 | 11.3 | 3.7 | ||
| 2 | JOWAR
|
Hybrid | 3.5 | 4.6 | 42.9 | 4.9 |
| Maldandi | 3.8 | 4.5 | 42.3 | 4.9 | ||
| 3 | BAJRA | 4.3 | 7.1 | 36.8 | 2.6 | |
| 4 | RAGI | 4.5 | 10.1 | 52.5 | 8.7 | |
| 5 | MAIZE | 3.0 | 4.4 | 19.3 | 3.5 | |
| 6 | TUR(ARHAR) | 9.2 | 7.9 | 4.1 | 2.2 | |
| 7 | MOONG | 7.7 | 6.7 | 25.1 | 1.1 | |
| 8 | URAD | 8.1 | 8.0 | 3.7 | 1.8 | |
| 9 | COTTON
|
Medium Staple | 1.6 | 4.1 | 28.1 | 2.0 |
| Long Staple | 1.5 | 3.8 | 26.2 | 1.8 | ||
| 10 | GROUNDNUT | 4.7 | 5.5 | 9.9 | 4.1 | |
| 11 | SUNFLOWER SEED | 3.9 | 3.8 | 31.4 | 4.9 | |
| 12 | SOYABEAN | Yellow | 6.7 | 9.9 | 11.4 | 9.1 |
| 13 | SESAMUM | 6.4 | 6.0 | 17.9 | 3.8 | |
| 14 | NIGERSEED | 4.8 | 5.9 | 45.1 | 1.1 | |
| RABI CROPS | ||||||
| 1 | WHEAT | 6.6 | 6.8 | 6.1 | 4.6 | |
| 2 | BARLEY | 8.2 | 6.4 | 2.1 | 5.9 | |
| 3 | GRAM | 14.3 | 10.0 | 5.0 | 5.5 | |
| 4 | MASUR (LENTIL) | 16.2 | 7.6 | 5.3 | 7.3 | |
| 5 | RAPESEED & MUSTARD | 10.4 | 8.1 | 5.0 | 5.4 | |
| 6 | SAFFLOWER | 12.1 | 10.8 | 20.6 | 5.5 |
Annexure II
Cost*, MSP and return over cost
(Rs. Per quintal)
| Commodity | 2018-19 | 2019-20 | 2020-21 | ||||||
| KHARIF CROPS | Cost | MSP | % Return over Cost | Cost | MSP | % Return over Cost | Cost | MSP | % Return over Cost |
| PADDY(Common) | 1166 | 1750 | 50 | 1208 | 1815 | 50 | 1245 | 1868 | 50 |
| (Grade A) ^ | 1770 | 1835 | 1888 | ||||||
| JOWAR (Hybrid) | 1619 | 2430 | 50 | 1698 | 2550 | 50 | 1746 | 2620 | 50 |
| (Maldandi) ^ | 2450 | 2570 | 2640 | ||||||
| BAJRA | 990 | 1950 | 97 | 1083 | 2000 | 85 | 1175 | 2150 | 83 |
| RAGI | 1931 | 2897 | 50 | 2100 | 3150 | 50 | 2194 | 3295 | 50 |
| MAIZE | 1131 | 1700 | 50 | 1171 | 1760 | 50 | 1213 | 1850 | 53 |
| ARHAR(Tur) | 3432 | 5675 | 65 | 3636 | 5800 | 60 | 3796 | 6000 | 58 |
| MOONG | 4650 | 6975 | 50 | 4699 | 7050 | 50 | 4797 | 7196 | 50 |
| URAD | 3438 | 5600 | 63 | 3477 | 5700 | 64 | 3660 | 6000 | 64 |
| COTTON (Medium Staple) | 3433 | 5150 | 50 | 3501 | 5255 | 50 | 3676 | 5515 | 50 |
| (Long Staple) ^ | 5450 | 5550 | 5825 | ||||||
| GROUNDNUT | 3260 | 4890 | 50 | 3394 | 5090 | 50 | 3515 | 5275 | 50 |
| SUNFLOWER SEED | 3592 | 5388 | 50 | 3767 | 5650 | 50 | 3921 | 5885 | 50 |
| SOYABEAN(Yellow) | 2266 | 3399 | 50 | 2473 | 3710 | 50 | 2587 | 3880 | 50 |
| SESAMUM | 4166 | 6249 | 50 | 4322 | 6485 | 50 | 4570 | 6855 | 50 |
| NIGERSEED | 3918 | 5877 | 50 | 3960 | 5940 | 50 | 4462 | 6695 | 50 |
| RABI CROPS | |||||||||
| WHEAT | 866 | 1840 | 113 | 923 | 1925 | 109 | 960 | 1975 | 106 |
| BARLEY | 860 | 1440 | 67 | 919 | 1525 | 66 | 971 | 1600 | 65 |
| GRAM | 2637 | 4620 | 75 | 2801 | 4875 | 74 | 2866 | 5100 | 78 |
| MASUR (LENTIL) | 2532 | 4475 | 77 | 2727 | 4800 | 76 | 2864 | 5100 | 78 |
| RAPESEED and MUSTARD | 2212 | 4200 | 90 | 2323 | 4425 | 90 | 2415 | 4650 | 93 |
| SAFFLOWER | 3294 | 4945 | 50 | 3470 | 5215 | 50 | 3551 | 5327 | 50 |
*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 (Grade A), Jowar (Maldandi), Cotton (long staple) and Copra (ball).