Cabinet Approves Hike In

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MSP of Moong increased by Rs.1400 per quintal
MSP of Sunflower increased by Rs.1288 per quintal
MSP of Ragi up by Rs.997 per quintal
MSP of Common Paddy increased by Rs.200 per quintal

Giving a major boost for the farmers’ income, the Cabinet Committee on Economic Affairs chaired by Prime Minister Shri Narendra Modi has approved the increase in the Minimum Support Prices (MSPs) for all kharif crops for 2018-19 Season.

The decision of the CCEA is a historic one as it redeems the promise of the pre-determined principle of fixing the MSPs at a level of at least 150 percent of the cost of production announced by the Union Budget for 2018-19.  The Commission for Agricultural Costs and Prices (CACP) has recommended MSPs for all kharif crops broadly in line with the announced principle.

The Minimum Support Prices (MSPs) for all kharif crops of 2018-19 season have been increased as follows:

Commodity Variety MSP For 2017 – 18 Season  MSP Approved for 2018 – 19 Season Increase Return* Over Cost in Percent
Absolute Percentage
Paddy Common 1550 1750 200 12.9 50.09
Grade A 1590 1770 180 11.32 51.8
Jowar Hybrid 1700 2430 730 42.94 50.09
Maldandi 1725 2450 725 42.03 51.33
Bajra 1425 1950 525 36.84 96.97
Ragi 1900 2897 997 52.47 50.01
Maize 1425 1700 275 19.3 50.31
Arhar(Tuar) 5450 5675 225 4.13 65.36
Moong 5575 6975 1400 25.11 50
Urad 5400 5600 200 3.7 62.89
Groundnut 4450 4890 440 9.89 50
Sunflower Seed 4100 5388 1288 31.42 50.01
Soyabean 3050 3399 349 11.44 50.01
Sesamum 5300 6249 949 17.91 50.01
Nigerseed 4050 5877 1827 45.11 50.01
Cotton Medium Staple 4020 5150 1130 28.11 50.01
Long Staple


The Budget for 2018-19 had indicated that a paradigm shift in the agricultural policies is needed to achieve the objective of doubling farmers’ income by 2022 through greater emphasis on generating higher incomes of farmers. The increase in the MSPs of Nigerseed at Rs.1827 per quintal, moong by Rs.1400 per quintal, sunflower seed by Rs.1288 per quintal and cotton by Rs.l 130 per quintal is unprecedented.

Amongst cereals and nutri cereals, in terms of absolute increase, MSP of paddy (common) has been raised by Rs 200 per quintal, jowar (hybrid) by Rs 730 per quintal and ragi by Rs 997 per quintal. The highest percentage increase in MSP over the previous year is for ragi (52.47 %) followed by jowar hybrid (42.94%). For pulses, apart from Moong, MSP of arhar (tur) has been raised by Rs 225 per quintal yielding a return over cost by 65.36 per cent and urad by Rs 200 per quintal with a return over cost by 62.89 per cent in order to maintain inter-crop-price parity. Similarly, the MSP of Bajra has been raised by Rs.525 per quintal yielding a return of 96.97 per cent over cost.

Promoting cultivation of pulses can help India overcome nutrition insecurity, improve soil fertility by nitrogen fixation and provide income support to farmers. Thus, increased MSPs for pulses will give a price signal to farmers to increase acreage. Further enhanced MSPs would boost production of oilseeds and encourage investment in its productivity and help reduce India’s import bill. Increase in MSPs of nutri-cereals will improve nutritional security and allow farmers to get higher prices.

Food Corporation of India (FCI) and other designated State Agencies would continue to provide price support to the farmers in the case of cereals including nutri-cereals. National Agricultural Cooperative Marketing Federation of India Limited (NAFED), FCI, Small Farmers Agri -Business Consortium (SFAC) and other designated Central Agencies would continue to undertake procurement of pulses and oilseeds. Cotton Corporation of India (CCI) will be the central nodal agency for undertaking price support operations for Cotton.

One thought on “Cabinet Approves Hike In

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  • July 19, 2018 at 9:59 PM

    After MSP, it is effective from what date
    How to sell it to Govt,please educate.
    Col Dalmir Singh

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