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.
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; and 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;
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 and for 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.
