Cost of Cultivation Scheme, GKVK, Bengaluru (GoI)

Cost of cultivation surveys are an important mechanism for data generation on cost structure of crops. Through comprehensive survey, the data are collected on various inputs which are used for the cultivation of crops. The data on various inputs and output are collected both in physical and monetary terms through direct interaction with the farmer. This data collection is a continuous process which starts with the beginning of the season and goes till the end of season. The farmer’s field is visited regularly and data is generated as and when the farmers are carried out the field operations without any time lapse, which is accurately recorded. The data so collected is generally used to work out cost of cultivation per unit area and cost of production per unit of produce. Later, the collected data thoroughly scrutinized at different levels by the scheme staff and submitted to Economics, Statistics and Evaluation Division (MSP unit) of Department of Agriculture and Farmers Welfare, Government of India for generation of cost estimates of mandate crops.

The Commission for Agricultural Costs & Prices (CACP) is the prime user of cost of cultivation/production data for arriving at the Minimum Support Prices (MSPs) of mandate crops. Apart from CACP, research institutions, Government organizations and Non-Governmental organizations, Private Organizations and researchers use this data for research and policy formulations.

In India, E, S & E division operates under the Ministry of Agriculture and Farmers Welfare is the nodal organization responsible for collection of data on cost of cultivation/production of major mandate crops. The E, S & E division is responsible for collection & compilation of data and generates cost estimates under the scheme entitled “Comprehensive Scheme for Studying Cost of Cultivation of Principal Crops in India”. The scheme was launched during the year 1970-71. It is meant to collect cost accounting data on inputs and output which could then be used for estimation of cost of cultivation and cost of production.

Objective of the CCS scheme:

1. Collection, compilation and maintenance of database on different facets of the agricultural and allied sectors to provide input for policy formulation to the Central Government from time to time.
2. To generate operation-wise input, output and cost estimates, income from the agricultural & allied activities and submission of cost estimatesto Commission for Agriculture Costs and Prices (CACP) for recommending Minimum Support Prices (MSP) for mandate crops.