India says increasing minimum buying price for summer crops by up to 50 percent


The Indian government announced it was raising the minimum support price (MSP) for kharif crops by 50 percent to ensure remunerative prices to the growers for their produce.

The government’s strategy is one of promoting sustainable agriculture with diversified cropping pattern matching with the country’s agro-climatic conditions, towards higher productivity without jeopardising nation’s bio-diversity, a government statement said.

“Support is in the form of MSP as well as procurement. Besides, with the intention of giving enough policy thrust to income security of the farmers. Government’s production-centric approach has been replaced by income-centric approach,” the statement added.

According to the statement, concerted efforts were made over the last few years to realign the MSPs in favour of oilseeds, pulses and coarse cereals to encourage farmers shift to larger area under these crops and adopt best technologies and farm practices, to correct demand – supply imbalance.

“The added focus on nutri-rich nutri-cereals is to incentivise its production in the areas where rice-wheat cannot be grown without long term adverse implications for groundwater table,” it said.

MSP for all Kharif crops for marketing season 2020-21

Sl. NoCropsProjected Cost* KMS 2020-21MSP for Kharif 2020-21Increase in MSP (Absolute) Return over Cost (in %)
1Paddy (Common)1,2451,86853 50
2Paddy (Grade A)^1,88853 
3Jowar (Hybrid)1,7462,62070 50
4Jowar (Maldandi)^2,64070 
5Bajra1,1752,150150 83
6Ragi2,1943,295145 50
7Maize1,2131,85090 53
8Tur (Arhar)3,7966,000200 58
9Moong4,7977,196146 50
10Urad3,6606,000300 64
11Groundnut3,5155,275185 50
12Sunflower Seed3,9215,885235 50
13Soybean (yellow)2,5873,880170 50
14Sesamum4,5706,855370 50
15Nigerseed4,4626,695755 50
16Cotton (Medium Staple)3,6765,515260 50
17Cotton (Long Staple)^5,825275 

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