MSP increase for Rabi crops gets cabinet approval

Concerted efforts were made over the last few years to realign the MSPs in favour of oilseeds, pulses and coarse cereals to encourage farmers

New Delhi:The Cabinet Committee on Economic Affairs (CCEA) chaired by Prime Minister Narendra Modi has approved the increase in the minimum support prices (MSP) for all mandated Rabi crops for Rabi Marketing Season (RMS) 2022-23.

The highest absolute increase in MSP over the previous year has been recommended for lentil (Masur) and rapeseeds & mustard (Rs400 per quintal each) followed by gram (Rs130 per quintal). In the case of safflower, there has been an increase of Rs.114 per quintal, in comparison to the previous year. The differential price is aimed at encouraging crop diversification.

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 a reasonably fair remuneration for the farmers. The expected returns to farmers over their cost of production are estimated to be the highest in the case of wheat and rapeseed and mustard (100% each), followed by lentil (79%), gram (74%), barley (60%), and safflower (50%).

Concerted efforts were made over the last few years to realign the MSPs in favour of oilseeds, pulses and coarse cereals to encourage farmers. Additionally, the recently announced National Mission on Edible Oils-Oil Palm (NMEO-OP) scheme will help in increasing the domestic production of edible oils and reduce imports dependency. With a total outlay of Rs.11,040 crore, the scheme will not only increases productivity but also benefit the farmers.

The Umbrella Scheme 'Pradhan Mantri Annadata Aay Sanrakshan Abhiyan'(PM-AASHA) announced by the government in 2018 will aid in providing remunerative returns to farmers for their produce. The Umbrella Scheme consists of three sub-schemes i.e. Price Support Scheme, Price Deficiency Payment Scheme and Private Procurement & Stockist Scheme on a pilot basis.