Cabinet Committee on Economic Affairs, CCEA, has increased the Minimum Support Price (MSP) for all Rabi crops for the current financial year which will be marketed in 2019-20 season. The MSP of wheat has been raised by 105 rupees per quintal, Masur by 225 per quintal, and Gram by 220 per quintal.
According to Union Minister Ravishankar Prasad, the decision is a step towards doubling the farmers’ income. The decision will give additional return to the farmers of 62,635 crore rupees by way of increasing the MSP of notified crops to at least 50 per cent return over cost of production.
Return over cost of production
- For wheat the cost of production is Rs 866 per quintal and MSP is Rs 1840 per quintal which gives a return of 112.5% over cost of production.
- For gram cost of production is Rs 2637 per quintal and MSP is Rs 4620 per quintal giving a return of 75.2%..
- For Masur cost of production is Rs 2532 per quintal and MSP is Rs 4475 per quintal giving a return of 76.7%.
Source- Press Information Bureau