India raises minimum support price for key kharif crops

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Photo courtesy: ADB

The Indian government announced it was raising the minimum support price (MSP) for paddy and other key kharif crops in a move seen as an attempt to garner farmer votes ahead of key state and national elections .

The Cabinet Committee on Economic Affairs, which met in New Delhi on Wednesday, called it a historic decision “as it redeems the promise of the pre-determined principle of fixing the MSPs at a level of at least 150 percent of the cost of production announced by the Union Budget for 2018-19.”

A government statement said the MSP for rice was being increased by as much as Rs 200/quintal. For moong the increase was by Rs 1400 per quintal while that for sunflower was Rs 1238 per quintal.

The Budget for 2018-19 had indicated that a paradigm shift in the agricultural policies is needed to achieve the objective of doubling farmers’ income by 2022 through greater emphasis on generating higher incomes of farmers, the statement added.

It said that the Food Corporation of India (FCI) and other designated state agencies would continue to provide price support to the farmers in the case of cereals including nutri-cereals. National Agricultural Cooperative Marketing Federation of India Limited (NAFED), FCI, Small Farmers Agri -Business Consortium 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.

The Minimum Support Prices (MSPs) increases are as follows:

(Rs/quintal)

Commodity

 

Variety

 

MSP for 2017-18Season

 

MSP approvedfor 2018-19Season

 

Increase

 

Return*over cost in percent

 

Absolute

 

 

 

Absolute

 

Percentage

 

Paddy

 

Common

 

1550

 

1750

 

200

 

12.90

 

50.09

 

Grade A

Grade A

 

1590

 

1770

 

180

 

11.32

 

51.80

 

Jowar

 

Hybrid

 

1700

 

2430

 

730

 

42.94

 

50.09

 

Maldandi

Maldandi

 

1725

 

2450

 

725

 

42.03

 

51.33

 

Bajra

 

 

1425

 

1950

 

525

 

36.84

 

96.97

 

Ragi

 

 

1900

 

2897

 

997

 

52.47

 

50.01

 

Maize

 

 

1425

 

1700

 

275

 

19.30

 

50.31

 

Arhar(Tur)

 

 

5450

 

5675

 

225

 

4.13

 

65.36

 

Moong

 

 

5575

 

6975

 

1400

 

25.11

 

50.00

 

Urad

 

 

5400

 

5600

 

200

 

3.70

 

62.89

 

Groundnut

 

 

4450

 

4890

 

440

 

9.89

 

50.00

 

Sunflower Seed

 

 

4100

 

5388

 

1288

 

31.42

 

50.01

 

Soyabean

 

 

3050

 

3399

 

349

 

11.44

 

50.01

 

Sesamum

 

 

5300

 

6249

 

949

 

17.91

 

50.01

 

Nigerseed

 

 

4050

 

5877

 

1827

 

45.11

 

50.01

 

Cotton

 

Medium Staple

 

4020

 

5150

 

1130

 

28.11

 

50.01

 

Long Staple

 

4320

 

5450

 

1130

 

26.16

 

58.75

 

 

 

Shekhar Ghosh is consulting editor, Indoasiancommodities.com. He has edited and written for publications like Business India, Business Standard, Business Today, Outlook and many other international publications. He can be reached at shekhar.ghosh@indoasiancommodities.in.

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