CACP projects lowest cost of production for wheat in 2024-25

The Commission for Agricultural Costs and Prices (CACP) has projected the cost of production (CoP) of the rabi (winter-sown) crops of India for the rabi marketing season (RMS) 2024-25. Based on these costs, CACP recommended the minimum support price (MSP) for the rabi crops that were approved by the Cabinet on October 16.

As per the CACP calculations, the cost of production (COP) of crops includes A2 (actual paid-out cost), A2+FL (actual paid-out cost plus imputed value of family labour), and C2 (comprehensive cost, including rental value of own land – net of land revenue and interest on value of own fixed capital assets – excluding land). The commission projects COP for each crop using state-wise actual cost estimates.

The lowest projected C2 COP (A2, A2+FL and C2) for the RMS 2024-25 was calculated for wheat at Rs 1,720 per quintal (1 quintal = 100kg). For barley, the projected C2 COP is Rs 1,737 per quintal. The MSP for wheat and barley for RMS 2025-26 is Rs 2,425 per quintal and Rs 1,980 per quintal, respectively.

Among the pulses, the projected C2 COP for masur (lentil) in 2024-25 was Rs 5,061 per quintal and Rs 4,662 per quintal for chana (gram). The MSP for RMS 2025-26 for lentil and gram is Rs 6,700 per quintal and Rs 5,650 per quintal, respectively.

Among oilseeds, the CACP has calculated the projected C2 COP for RMS 2024-25 for rapeseed mustard at Rs 4,294 per quintal and Rs 5,550 per quintal for kusum (safflower). The MSP for RMS 2025-26 for rapeseed mustard is Rs 5,950 per quintal and Rs 5,950 per quintal for safflower.

This article has been republished from The Times of India.