For wheat, MSP is 32.7% higher than comprehensive cost (C2) of production
Rapeseed-mustard has the highest margin per quintal in the minimum support price (MSP) for the Rabi marketing season (RMS) 2022-23 over the comprehensive cost (C2) of production, according to the calculations of the Commission for Agricultural Costs and Prices (CACP). Acting on the recommendations of CACP, the Indian government has announced the MSP of rapeseed-mustard at Rs 5,050 per quintal for RMS 2022-23, which is 44% more than the C2 for the crop calculated at Rs 3,506 per quintal.
For wheat, the margin of the MSP over C2 is 32.7% for the RMS 2022-23, as per CACP calculations. The support price of wheat is Rs 2,015 per quintal while C2 has been put at Rs 1,1518 per quintal.
Among the six rabi crops for which MSP has been announced, safflower has the lowest margin of the MSP over C2 at 7.7%. Safflower MSP for RMS 2022-23 is Rs 5,441 per quintal while C2 has been calculated at Rs 5,050 per quintal.
While recommending MSPs of mandated rabi (winter-sown) crops in India, the CACP considers several factors such as the cost of production, demand and supply situation, trends in domestic and international prices, inter-crop price parity, terms of trade between agriculture and non-agriculture sectors, the likely impact of MSP on consumers and overall economy along with rational utilization of land, water and other production resources, and a minimum of 50% as the margin over cost of production.
The commission uses crop-wise and state-wise cost estimates provided by the Directorate of Economics and Statistics (DES), Union Ministry of Agriculture and Farmers Welfare compiled under ‘Comprehensive Scheme (CS) for studying the Cost of Cultivation of Principal Crops in India’.
The projected cost of cultivation (CoC) estimates for rabi crops for the 2021-22 crop season are based on the latest three years’ actual cost estimates from 2017-18 to 2019-20, for most of the states. However, for barley in Madhya Pradesh, CoC estimates are based on actual cost estimates available for the latest two years — 2018-19 and 2019-20, as data for 2017-18 were not available. In case of gram for Jharkhand and safflower for Karnataka, CoC estimates are based on actual cost estimates available for 2017-18 and 2018-19, as data for 2019-20 were not available.
In case of safflower in Maharashtra, CoC estimates are based on actual cost estimates available only for 2017-18. The CoC estimates are not projected for a crop in the state, where either share of the state in all-India production or share of a particular crop in total production of the crop group in the state is negligible or number of sample holdings under CS for the crop is inadequate.
All-India projected cost of production (A2, A2+FL & C2) of Rabi crops and MSP for RMS 2022-23
| Crop | Crop Year 2021-22 | ||||||
| Cost of Production (Rs per quintal) | MSP for 2022-23 (Rs per quintal) | Margin (%) in MSP
over CoP @ |
|||||
| *A2 | **A2+FL | #C2 | A2 | A2+FL | C2 | ||
| Wheat | 807 | 1,008 | 1,518 | 2,015 | 149.7 | 99.9 | 32.7 |
| Barley | 673 | 1,019 | 1,439 | 1,635 | 142.9 | 60.5 | 13.6 |
| Gram | 2,346 | 3,004 | 4,117 | 5,230 | 122.9 | 74.1 | 27 |
| Lentil | 2,303 | 3,079 | 4,422 | 5,500 | 138.8 | 78.6 | 24.4 |
| Rapeseed & mustard | 1,724 | 2,523 | 3,506 | 5,050 | 192.9 | 100.2 | 44 |
| Safflower | 3,013 | 3,627 | 5,050 | 5,441 | 80.6 | 50 | 7.7 |
Source: CACP calculations
* A2: Actual paid out cost
** A2+FL: Actual paid out cost plus imputed value of family labour
# C2: Comprehensive Cost including rental value of own land [net of land revenue and interest on value of own fixed capital assets (excluding land)]
MINIMUM SUPPORT PRICE (MSP) FOR MARKETING SEASON 2022-23
| Crop | MSP for 2022-23 (Rs/Q) | MSP for 2021-22 (Rs/Q) | Increase (Rs/Q) | Percentage increase |
| Wheat | 2,015 | 1,975 | 40 | 2% |
| Barley | 1,635 | 1,600 | 35 | 2% |
| Gram | 5,230 | 5,100 | 130 | 3% |
| Lentil (Masur) | 5,500 | 5,100 | 400 | 8% |
| Rapeseed & mustard | 5,050 | 4,650 | 400 | 9% |
| Safflower | 5,411 | 5,327 | 114 | 2% |
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