Cabinet approves MSP of all Kharif crops for 2019-20

Cabinet approves MSP of all Kharif crops for 2019-20
MSP of paddy increased by Rs 65 per quintal, jowar by Rs 120 per quintal, ragi by Rs 253 per quintal. MSP of tur, moong and urad pulses raised by Rs 125, Rs 75 and Rs 100 respectively

The Cabinet Committee on Economic Affairs (CCEA) Affairs chaired by Prime Minister Narendra Modi has approved the increase in the Minimum Support Prices (MSP) for all kharif crops for 2019-20 season.

For the kharif crops of 2019-20, the Government has increased the MSP of soyabean by Rs 311 per quintal, sunflower by Rs 262 per quintal and sesamum by Rs 236 per quintal.

Government has increased the MSP of tur dal by Rs.125 per quintal and uraddal by Rs.100 per quintal.

The MSP of Jowar has been hiked by Rs 120 per quintal while in case of Ragi it has been hiked by Rs 253 per quintal. The move comes in the backdrop of the need to promote cultivation and consumption of nutri-cereals. Besides, India celebrated 2018 as the National Year of Millets and the Food and Agriculture Organisation (FAO) Council has approved India’s proposal to observe an International Year of Millets in 2023.

For cotton (medium staple) and cotton (long staple), the MSP has been increased by Rs. 105 per quintal and Rs. 100 per quintal respectively.

The cost of cultivation includes all paid out costs such as those incurred on account of hired human labour, bullock labour/machine labour, rent paid for leased land, expenses incurred on use of material inputs like seeds, fertilisers, manures, irrigation charges, depreciation on implements and farm buildings, interest on working capital, diesel/’electricity for operation of pump sets and miscellaneous expenses and imputed value of family labour.

MSP for all kharif crops of 2019-20 season

 Crop MSP2018-19 MSP2019-20 Cost of production 2019-20 (Rs/quntl)Increase (Absolute)Return over cost (in %)
Paddy (Common) 1750 1815 1208 65 50 
Paddy (Grade A)^ 1770 1835 – 65 – 
Jowar (Hybrid) 2430 2550 1698 120 50 
Jowar (Maldandi)^ 2450 2570 – 120 – 
Bajra 1950 2000 1083 50 85 
Ragi 2897 3150 2100 253 50 
Maize 1700 1760 1171 60 50 
Tur (Arhar) 5675 5800 3636 125 60 
Moong 6975 7050 4699 75 50 
Urad 5600 5700 3477 100 64 
Groundnut 4890 5090 3394 200 50 
Sunflower Seed 5388 5650 3767 262 50 
Soyabean (yellow) 3399 3710 2473 311 50 
Sesamum 6249 6485 4322 236 50 
Nigerseed 5877 5940 3960 63 50 
Cotton (Medium Staple) 5150 5255 3501 105 50 
Cotton (Long Staple)^ 5450 5550 – 100 – 

^Cost data are not separately compiled for Paddy(Grade A), Jowar (Maldandi), Cotton (long staple)
 
Implementation
In the case of cereals including nutri-cereals, Food Corporation of India (FCI) and other designated state agencies would continue to provide price support to the farmers. National Agricultural Cooperative Marketing Federation of India (NAFED), Small Farmers’ Agribusiness Consortium (SFAC) and other designated Central agencies would continue to undertake procurement of pulses and oilseeds. Cotton Corporation of India (CCI) will be the central nodal agency for undertaking price support operations for cotton. NAFED would supplement efforts of CCI for cotton procurement. The losses, if any, incurred by the nodal agencies in such operations will be reimbursed by the government, a CCEA statement has said.

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