Assessing Economic Sustainability in Gujarat’s Cereal Sector: Trends in Costs, Prices, and MSP (2001 – 2022)

Abstract

The data highlights the changes in MSP over the years for each cereal. It's evident that MSPs have generally increased over time, although the rates of increase vary among different crops and years. The correlation analysis provides valuable insights into the relationships between MSP, wholesale prices, farm harvest prices, and the cost of production. Strong positive correlations between these variables indicate significant interdependence within the agricultural market. Notable changes in increasing order in MSP (Minimum support price) was seen over years in all cereals. Years with negative values in excess of actual MSP over COP (Cost of Production) suggested farmers were not able to cover even COP and years with positive values suggested farmers were in profitable margin after covering COP. Cost and prices of all the selected cereals were having high correlation between MSP, WP (Wholesale Price), FHP (Farm Harvest Price), COP (C2) and COP (A2 + FL (Family Labour). Highest growth rate amongst the particulars was seen for MSP in pearl millet and lowest for COP (A2 + FL) in pearl millet. More variability was seen in MSP for pearl millet and low variability was seen in MSP for Wheat. Overall, analysis provides a comprehensive understanding of the agricultural landscape in Gujarat state.