Annual Report 2009-2010 - Department of Agriculture & Co-operation

Annual Report 2009-2010
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3.3 Cost of Cultivation of Principal
Agricultural Crops: The estimates of the cost of
cultivation and cost of production of important
agricultural crops covered under the mechanism
of Minimum Support Prices (MSPs) are brought
out by this office. These estimates are furnished
to the Commission for Agricultural Costs and
Prices (CACP), which in turn recommends the
MSPs to the Government.
3.4 Coverage of Crops:
Cereals - paddy, wheat, jowar, bajra,
maize, ragi, and barley
Pulses - moong, urad, arhar, gram,
lentils, and peas
Oilseeds - groundnut, rapeseed and
mustard, niger seeds, soyabean,
sunflower, sesamum, and
safflower.
Fibre Crops - cotton and jute
Others - sugarcane, VFC tobacco, onion,
potato, and coconut
3.5 The nodal agencies involved with the
Survey are:
Agricultural Universities - 12
General Universities - 3
Colleges - 1
Directorate of Tobacco Development Board-1
3.6 Support Price for Agricultural
Commodities: The Directorate of Economics and
Statistics examines the reports submitted by the
Commission for Agricultural Costs and Prices on
price policy for principal crops and other aspects
of agriculture. The price policy for agricultural
commodities reflects an important element of
overall agricultural policy. Minimum Support
Prices (MSP) for important cereals, pulses,
oilseeds, and other commercial crops, namely,
cotton, jute, and sugarcane, are fixed by the
Government every year on the basis of
recommendations made by the Commission for
Agricultural Costs and Prices (CACP).
3.7 The Government's price policy for
agricultural produce seeks to ensure
remunerative prices to growers for their produce,
with a view to encouraging higher investment
and production, and to safeguard the interests
of consumers by making supplies available at
reasonable prices. The price policy also seeks
to evolve a balanced and integrated price
structure within the perspective of the overall
needs of the economy. To achieve this end, the
Government announces Minimum Support
Prices (MSPs) for major agricultural commodities
each season.
3.8 The Government decides on the support
price for various agricultural commodities, taking
into account the recommendations of the
Commission for Agricultural Costs and Prices
(CACP), the views of state governments and
Central Ministries, as well as such other relevant
factors which, in the opinion of the Government,
are important for fixing support prices.
3.9 The Government has fixed the Minimum
Support Prices (MSPs) of Kharif crops for the
2009-10 season. The MSP for paddy (common)
has been fixed at Rs.950 per quintal, and that of
paddy (Grade A) at Rs.980 per quintal. A bonus
of Rs. 50 per quintal is also payable over and
above the MSP for paddy. The MSP for arhar (tur)
has been raised over 2008-09, by Rs.300 per
quintal and fixed at Rs.2,300 per quintal, while
that of moong has been raised by Rs.240 per
quintal and fixed at Rs.2,760 per quintal. The MSP
of sesamum has been fixed at Rs.2,850 per
quintal, after raising it by Rs.100 per quintal. The
MSPs of other Kharif crops have been retained
at their 2008-09 levels.
3.10 The MSPs for Rabi crops for the 2009-10
season, to be marketed in 2010-11, have been
raised over the previous years' MSPs. The MSP
for wheat has been raised to Rs. 1,100 per
quintal, for barley to Rs. 750 per quintal from
Rs.1,080 and Rs.680 per quintal respectively.
MSP's for gram and safflower have been raised