Business

After Kisan Rally, Cabinet Approves MSP Hike, 50% Extra Profit For Farmers

JAVED SAIFI | 0
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| October 4 , 2018 , 14:30 IST

After the Kisan Kranti Padyatra that was ended in a controversial way at Kisan Ghat in New Delhi, Cabinet Committee on Economic Affairs (CCEA) on Wednesday has approved to increase the Minimum Support Prices for all Rabi crops for 2018-19 to be marketed in 2019-20 season.

CCEA said, “It will give additional return to the farmers of Rs 62,635 crore by way of increasing MSP of notified crops to at least 50 percent return over cost of production and will aid in doubling farmer’s income.”

The government has increased the MSPs of wheat by Rs 105 per quintal, Safflower by Rs 845 per quintal, barley by Rs 30 per quintal, Masur grain by Rs 225 per quintal, gram by Rs 220 per quintal and rapeseed and mustard by Rs 200 per quintal.

The MSPs fixed by the government are much higher than the cost of production.

Also Read: 50% Profit Margin Under New Kharif Crop MSP Will Cost Govt Rs 33,500 Crore

The cost of production of wheat is Rs 866 per quintal and MSP is Rs 1840 per quintal which gives a return of 112.5 percent over the cost of production.

For barely the cost of production is Rs 860 per quintal and MSP is Rs 1440 per quintal giving a return of 67.4 percent.

For gram, the cost of production is Rs 2637 per quintal and MSP is Rs 4620 per quintal giving a return of 75.2 percent.

For Masur grain the cost of production is Rs 2532 per quintal and MSP is Rs 4475 per quintal giving a return of 76.7 percent.

For rapeseed and mustard the cost of production is Rs 2212 per quintal and MSP is Rs 4200 per quintal giving a return of 89.9 percent.

For safflower, the cost of production is Rs 3294 per quintal and MSP    is Rs 4945 per quintal giving a return of 50.1 percent.