MSP hiked for 6 Rabi crops! After two key farm bills, farmers get another gift from Modi government - Full price details
Cabinet Committee on Economic Affairs (CCEA) chaired by Prime Minister Narendra Modi on Monday approved an increase in the Minimum Support Prices (MSPs) for all mandated Rabi crops.
A day after Prime Minister Narendra Modi described the passage of two farm sector bills as a watershed moment in the history of Indian agriculture, the Cabinet Committee on Economic Affairs (CCEA) chaired by Prime Minister Narendra Modi on Monday approved an increase in the Minimum Support Prices (MSPs) for all mandated Rabi crops for marketing season 2021-22. This increase in MSP is in line with the recommendations of Swaminathan Commission, according to an official statement.
In view of nutritional requirements and changing dietary pattern and to achieve self-sufficiency in pulses and oilseeds production, the Government has fixed relatively higher MSP for these crops, Cabinet Committee on Economic Affairs (CCEA) said.
The highest increase in MSP has been announced for lentil (Rs. 300 per quintal) followed by gram and rapeseed and mustard (Rs. 225 per quintal each) and safflower (Rs. 112 per quintal). For barley and wheat, an increase of Rs. 75 per quintal and Rs 50 per quintal respectively has been announced. The differential remuneration is aimed at encouraging crop diversification.
The increase in MSP for Rabi Crops for marketing season 2021-22 is in line with the principle of fixing the MSPs at a level of at least 1.5 times of the All-India weighted average Cost of Production as announced in Union Budget 2018-19. The expected returns to farmers over their cost of production are estimated to be highest in case of Wheat (106%) followed by rapeseed and mustard (93%), gram and lentil (78%). For barley, return to farmers over their cost of production is estimated at 65% and for safflower, it is 50%.
Support is in the form of MSP as well as procurement. In the case of cereals, Food Corporation of India (FCI) and other designated State Agencies would continue to provide price support to the farmers. Government has set up a buffer stock of pulses and domestic procurement of pulses is also being done under Price Stabilization Fund (PSF).
CCEA said, "Despite global COVID-19 pandemic and consequent nationwide lockdown, timely intervention made by Government has led to an all-time record procurement of wheat at about 39 million tonnes for RMS 2020-21. Around 43 lakh farmers benefitted under procurement operations period which is 22 percent higher than the RMS 2019-20. In 2019-20, 390 lakh tonnes of wheat is estimated to be procured, while in 2014-15, 280 lakh tonnes was procured. In 2019-20, 15 lakh metric tonnes of pulses is estimated to be procured, while in 2014-15, 3 lakh tonnes was procured. In 2019-20, 18 lakh metric tonnes of oilseeds is estimated to be procured, while in 2014-15, 12 thousand metric tonnes was procured."
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