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Minimum Support Price Benefit Calculator

Work out minimum support price benefit instantly with clear inputs, formula shown and shareable results.

About Minimum Support Price Benefit Calculator

Selling at the minimum support price only pays if the MSP net of the extra cost of reaching and queueing at the procurement centre beats the local market price. Netting the per-quintal selling cost off the MSP and comparing with the mandi rate gives the real gain per quintal and for the whole lot.

Formula

MSP benefit

Net MSP = MSP - selling cost per quintal; benefit = (net MSP - market price) x quantity

Worked example

With the default values below, Minimum Support Price Benefit Calculator returns Benefit From Selling At MSP of $37,000.00. Change any input above and every figure here is recalculated in your browser.

Inputs used

Minimum Support Priceminimum 0 per quintal
2,275 per quintal
Prevailing Market Priceminimum 0 per quintal
2,050 per quintal
Quantity To Sellminimum 0 quintals
200 quintals
Cost Of Selling At Procurement Centreminimum 0 per quintal
40 per quintal

Results

Benefit From Selling At MSP
$37,000.00
Net Gain Per Quintal
$185.00
Net MSP After Selling Costs
$2,235.00
MSP Premium Over Market
10.98%

Step by step

  1. 1Values used
  2. 2MSP benefit
  3. 3Benefit From Selling At MSP= 37,000.00
  4. 4Net Gain Per Quintal= 185.00
  5. 5Net MSP After Selling Costs= 2,235.00
  6. 6MSP Premium Over Market= 10.98

Assumptions and limits

  • The result is derived only from the 4 inputs listed above. Anything not among them is not part of the calculation.
  • In particular, this calculator does not take inflation, tax or compounding frequency into account.
  • Figures are rounded for display to 2 decimal places, so totals built from several rounded parts can differ slightly from the unrounded arithmetic.

How these calculators are built and tested is described on the Methodology page. If a figure looks wrong, please report it.

Frequently Asked Questions

What costs should go into the selling cost?

Extra freight to the procurement centre, cleaning and grading to meet fair average quality, gunny bags if not supplied, waiting time and any deduction for moisture.

What if the market price is above MSP?

Then MSP is irrelevant — sell in the market. MSP is a floor, not a ceiling, and in surplus years the market often trades above it for good quality.

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