Govt hikes MSP for wheat by Rs105 per quintal amidst farmers' stir
03 October 2018
The union cabinet has approved a Rs105 per quintal hike in the minimum support price of wheat to Rs1,840 per quintal for the 2018-19 season, amidst ongoing protests by farmers in the capital. The MSP of wheat was Rs 1,735 per quintal in the 2017-18 crop year.
The union cabinet, chaired by Prime Minister Narendra Modi, at its meeting today approved minimum support prices (MSP) of Rabi crops, according to a government release.
“Giving a boost to farmers’ income, the Cabinet Committee on Economic Affairs chaired by Prime Minister Narendra Modi has approved the increase in the minimum support prices for all Rabi crops for 2018-19 to be marketed in 2019-20 season,” the release stated.
“The farmer friendly initiative will give additional return to the farmers of Rs62,635 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 release added.
The MSP of wheat has been raised by Rs105 per quintal, that of safflower by Rs845 per quintal, barley by Rs30 per quintal, masur (lentil) by Rs225 per quintal, gram by Rs220 per quintal and rapeseed and mustard by Rs200 per quintal, the relesae stated.
The MSPs fixed by the government for wheat, barley, gram, masur, rapeseed and mustard and safflower are much higher than the cost of production.
For wheat the cost of production is estimated at Rs866 per quintal against its MSP of Rs1,840 per quintal, which gives a return of 112.5 per cent over cost of production;
For barley the cost of production is Rs860 per quintal and MSP is Rs1,440 per quintal, giving a return of 67.4 per cent;
For gram the cost of production is Rs2,637 per quintal and MSP is Rs4,620 per quintal, a return of 75.2 per cent;
For masur the cost of production is Rs2,532 per quintal and MSP is Rs4,475 per quintal which is a return of 76.7 per cent;
For rapeseed and mustard the cost of production is Rs2,212 per quintal while the MSP is Rs4,200 per quintal, which is a return of 89.9 per cent; while
For safflower the cost of production is Rs3,294 per quintal MSP at Rs4,945 per quintal, giving a return of 50.1 per cent.
The minimum support prices are applicable for all rabi crops of 2018-19 season to be marketed in 2019-20.
(*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.)