Minimum Support Price: A matter of definition

July 09, 2018 06:20 pm | Updated 06:53 pm IST

A farmer at work on the field | File photo

A farmer at work on the field | File photo

The government has agreed to fix the Minimum Support Price (MSP) at 50% more than the production cost incurred by the farmer in kharif crops.

But, there is a marked difference between what the government considers as the cost of production and what the farmer incurs.

Here's a look at the difference in definition, how much each crop loses because of this difference and how frequently the Centre changes the MSP.


The below table shows that the gap between promised and calculated MSP is highest for dal varieties Moong, Urad and Arhar.

Asset 2

The below chart depicts the relationship between MSP and years when there was a Lok Sabha election.

Asset 3

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