Page 611 - ES 2020-21_Volume-1-2 [28-01-21]

238 Economic Survey 2020-21 Volume 2

MSP of Kharif Crops

7.12 On 1st June, 2020, the Government had announced the increase in MSP for kharif crops
for marketing season 2020-21. The highest increase in MSP announced is for nigerseed (` 755
per quintal) followed by sesamum (` 370 per quintal), urad (` 300 per quintal) and cotton (long
staple) (` 275 per quintal). The expected returns to the farmers over their cost of production are
estimated to be highest in the case of bajra (83 per cent) followed by urad (64 per cent), tur (58
per cent) and maize (53 per cent). For the rest of the crops, return to farmers over their cost of
production is estimated to be at least 50 per cent (Figure 8).

Figure 8: Cost, MSP & Returns of Kharif Crops of year 2020-21

8000 83 90
7000
80
Cost & MSP (Rs per quintal) 6000 50 50 50 53 58 50 64 50 50 50 50 50 50 70 Returns over cost (in %age terms)
5000
60
4000
50
3000
40
2000
1000
0 30
20
seed

Cost* MSP % Return over Cost

Source: DAC&FW
* 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 & imputed value of family labour.

MSP of Rabi Crops

7.13 On 21 September, 2020 the Government had announced the MSPs for all mandated rabi
st
crops for marketing season 2021-22. The highest increase in MSP has been announced for
lentil (` 300 per quintal) followed by gram and rapeseed & mustard (` 225 per quintal each)
and safflower (` 112 per quintal). For barley and wheat, an increase of ` 75 per quintal and
` 50 per quintal respectively has been announced. The expected returns to the farmers over
their cost of production are estimated to be highest in case of Wheat (106 per cent) followed by
rapeseed & mustard (93 per cent), gram and lentil (78 per cent). For barley, return to farmers
over their cost of production is estimated at 65 per cent and for safflower, it is 50 per cent
(Figure 9). The differential in remuneration is aimed at encouraging crop diversification.