Trends in Production and Comparison of Cost of Production and Minimum Support Price of Coarse Cereals

Abstract

In the rainfed regions of the country coarse cereals form the staple diet of the majority of the poor. Keeping in view of the importance of coarse cereals, this study estimates the Compound Growth Rate (CGR) of area, production and productivity of major coarse cereals and analyzes the trends in cost of production of coarse cereals and the Minimum Support Price (MSP) announced by the Government. The study is based on time series data on area, production and productivity of coarse cereals (bajra, maize, ragi, jowar) from 1970-71 to 2007 - 08. The 38 years data were classified at decadal intervals and the decadal trends in area, production and productivity were analyzed through CGR. The data on cost of cultivation and MSP were collected from the reports of Commission on Agriculture Costs and Prices, Government of India and compared. The difference between MSP and cost of production was highest in ragi followed by cumbu, maize and Jowar.