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 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.
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NW/AKT/SH