Tatsat Chronicle Magazine

Union Cabinet Clears Hike In Minimum Support Price For Rabi Crops

September 9, 2021

The Cabinet Committee on Economic Affairs (CCEA) chaired by PM Modi approved an increase in the Minimum Support Prices (MSP) for all the mandated Rabi crops for the Rabi Marketing Season (RMS) 2022-23.

The Centre has increased the minimum support price (MSP) for wheat for the upcoming rabi season to ₹2,015 per quintal, a 2% hike from the ₹1,975 per quintal rate of last year.

The highest absolute increase in MSP has been suggested for lentils (Masur) as well as rapeseeds and mustard (Rs 400 per quintal each).

* Refers to comprehensive cost which includes all paid out costs such as those incurred on account of hired human labour, bullock labour/machine labour, rent paid for leased in land, expenses incurred on use of material inputs like seeds, fertilizers, manures, irrigation charges, depreciation on implements and farm buildings, interest on working capital, diesel/electricity for operation of pump sets etc., miscellaneous expenses and imputed value of family labour. (Data Provided by Ministry of Agriculture & Farmers Welfare, Government of India)

Some other crops for which MSP has been hiked are gram (Rs 130 per quintal), safflower (Rs 114 per quintal), wheat and barley (Rs 40 and ₹ 35 per quintal respectively).

Oilseeds and pulses such as mustard, safflower and masoor dal saw higher MSP increases of up to 8% in a bid to encourage crop diversification.

“Taking another big decision today in the interest of farmer brothers and sisters, the government has approved the increase in MSP of all Rabi crops,” Mr. Modi tweeted.

“While this will ensure maximum remunerative price for the ‘Annadataas’, it will also encourage them to sow a wide variety of crops,” the Prime Minister said.

The increase in MSP for rabi crops for RMS 2022-23 is in line with the Union Budget 2018-19 announcement of fixing the MSPs at a level of at least 1.5 times of the all-India weighted average cost of production, aiming towards reasonably fair remuneration for farmers.

The increase in MSP on Rabi crops including wheat and pulses have come at a time when farmers have been protesting at borders of the national capital since November 26, 2020, against three newly enacted farm law.

The Umbrella Scheme, Pradhan Mantri Annadata Aay SanraksHan Abhiyan (PM-AASHA), announced by the government in 2018 will aid in providing a remunerative return to the farmers for their produce.

The scheme consists of three sub-schemes, i.e., Price Support Scheme (PSS), Price Deficiency Payment Scheme (PDPS), and Private Procurement & Stockist Scheme (PPSS)