In 33 years, MSP for Paddy increased from Rs 137 to Rs 1470 per quintal
Sai Krishna Muthyanolla
October 7, 2017
The Minimum Support Price (MSP) for Paddy increased by over 10 times between 1984-85 and 2016-17. During the same period, the Government of India’s tax revenue increased by over 50 times.
Data from the Reserve Bank of India’s (RBI) recently released hand book of statistics on Indian Economy for 2016-17 indicates that the Minimum Support Price (MSP) for Paddy increased just over 10 times, from Rs 137 per quintal in 1984-85 to Rs 1470 per quintal in 2016-17. This is increase of 10.7 times to be precise. During the same period, the tax revenue of the Government of India increased by over 50 times.
MSP for Paddy & Wheat increased by similar levels
In the case of Paddy, the MSP increased by only about 4 times of the amount in 1984-85 till the year 2004-05. In 2004-05, the MSP for Paddy was Rs 560 per quintal. It increased by Rs 500 in the next 5 years and the MSP reached Rs 1050 per quintal in 2009-10. This pattern was observed in both Wheat & Coarse Cereals as well. In the case of Wheat, the MSP was Rs 157 per quintal in 1984-85, Rs 640 per quintal in 2004-05 & Rs 1625 per quintal in 2016-17. In the case of Coarse Cereals, the MSP was Rs 130 per quintal in 1984-85, Rs 515 per quintal in 2004-05 & Rs 1365 per quintal in 2016-17.
In the case of Urad, Tur & Moong, MSP increased by over 20 times
In the case of legumes or pulses, the MSP trajectory followed more or less a similar path, but increased over 20 times in 33 years. The MSP per quintal in the case of Urad, Tur & Moong was Rs 275  each in 1984-85. In 2004-05, the MSP for Tur was Rs 1390 per quintal and Rs 1410 per quintal in the case of the other two. Even in 2009-10, the MSP for Tur was Rs 2300 per quintal. The greatest increase was seen after 2009-10. By 2017-18, the MSP for Tur reached Rs 5450 per quintal, Rs 5575 per quintal for Moong and Rs 5400 per quintal for Urad.
Even in the case of Non-Food grains, the MSP increased by just over 10 times
In the case of a cash crop like Cotton, the MSP per quintal was Rs 535 in 1984-85 and was Rs 1960 per quintal in 2004-05. Between 2004-05 and 2016-17, the MSP increased from Rs 1960 per quintal to Rs 4160 per quintal. In the case of Groundnut (in shell), the MSP increased from Rs 340 per quintal in 1984-85 to Rs 4220 per quintal in 2016-17, an increase of over 12 times. In the case of Jute, the MSP increased from Rs 195 per quintal in 1984-85 to Rs 3200 per quintal in 2016-17, an increase of over 16 times. In the case of Mustard, the MSP increased from Rs 385 per quintal in 1984-85 to Rs 3700 per quintal in 2016-17, an increase of close to 10 times. In the case of Sunflower seeds, Soyabean etc., a similar pattern was observed.
Featured Image: By CEphoto, Uwe Aranas, via Wikimedia Commons