Cabinet Committee on Economic Affairs (CCEA)

Minimum Support Prices (MSP) for Kharif Crops

for marketing season 2020-21
Posted On: 01 JUN 2020 5:47PM by PIB Delhi

The Cabinet Committee on Economic Affairs (CCEA) chaired by the Hon'ble Prime
Minister Shri Narendra Modi has approved the increase in the Minimum Support
Prices (MSPs) for all mandated Kharif crops for marketing season 2020-21.

Government has increased the MSP of Kharif crops for marketing season 2020-21, to
ensure remunerative prices to the growers for their produce. The highest increase in
MSP is proposed for nigerseed (Rs 755 per quintal) followed by sesamum (Rs 370 per
quintal), urad (Rs 300 per quintal) and cotton (long staple) (Rs 275 per quintal). The
differential remuneration is aimed at encouraging crop diversification.

MSP for all Kharif crops for marketing season 2020-21:

 

Sl. Crops Projected MSP for Kharif Increase in Return over

No Cost* KMS 2020-21 MSP Cost (in %)
2020-21 (Absolute)

1 Paddy 1,245 1,868 53 50

(Common)
 

2 Paddy - 1,888 53 -
(Grade A)^
 

3 Jowar 1,746 2,620 70 50

(Hybrid)
 

4 Jowar - 2,640 70 -
(Maldandi)^
 

5 Bajra 1,175 2,150 150 83

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 6 Ragi 2,194 3,295 145 50

7 Maize 1,213 1,850 90 53

 

8 Tur (Arhar) 3,796 6,000 200 58

9 Moong 4,797 7,196 146 50

10 Urad 3,660 6,000 300 64

11 Groundnut 3,515 5,275 185 50

12 Sunflower 3,921 5,885 235 50

Seed
 

13 Soybean 2,587 3,880 170 50

(yellow)
 

14 Sesamum 4,570 6,855 370 50

15 Nigerseed 4,462 6,695 755 50

16 Cotton 3,676 5,515 260 50

(Medium
 
Staple)

17 Cotton (Long - 5,825 275 -

Staple)^
 

 
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^Cost data are not separately compiled for Paddy (Grade A), Jowar (Maldandi) and
Cotton (Long staple)
 

The increase in MSP for Kharif Crops for marketing season 2020-21 is in line with the
Union Budget 2018-19 announcement of fixing the MSPs at a level of at least 1.5 times
of the All-India weighted average Cost of Production (CoP), aiming at reasonably fair
remuneration for the fanners. The expected returns to farmers over their cost of
production are estimated to be highest in case of Bajra (83%) followed by urad (64%),
tur (58%) and maize (53%). For rest of the crops, return to farmers over their cost of
production is estimated to be at least 50%.

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 jeopardizing nation's bio-diversity. 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.

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 incentivize its
production in the areas where rice-wheat cannot be grown without long term
adverse implications for groundwater table.

In continuation with the above-mentioned measures, Government is taking holistic

approach towards supporting the farmers and facilitate farming related activities in
the lockdown situation due to Covid 19. Efforts are being made to facilitate marketing
of agricultural produce by the farmers. Advisories have been issued by the Union
Government to State Governments / UT to facilitate Direct Marketing, enabling direct
purchase from the fanners / FPOs / Cooperatives etc. by Bulk Buyers /Big Retailers /
Processors by limiting regulation under State APMC Act.
 

Besides, the Umbrella Scheme "Pradhan MantriAnnadataAaySanraksHanAbhiyan”

(PM-AASHA) announced by the government in 2018 will aid in providing
remunerative return to farmers for their produce. 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.

In addition, under the Pradhan MantriKisanSammanNidhi (PM-KISAN) Scheme

during the lockdown period from 24.3.2020 till date, about 8.89 crore farmer families
have been benefitted and an amount of Rs. 17,793 crore has been released so far.

In order to provide food security during the prevailing situation due to COVID-19
pandemic, the Government has decided to distribute pulses to the eligible households
under Pradhan MantriGaribKalyanYojana (PM-GKY). About 1,07,077.85 MT pulses
have so far been issue/d to the States/UTs.

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