Union Cabinet on Wednesday approved the increase in Minimum Support Price (MSP) for Rabi crops between ₹35-400. These crops include wheat, gram, masur (lentils), beside others. New rates will be applicable for Rabi marketing season 2022-23.
According to a statement issued by the government, this increase aims to ensure remunerative prices to the growers for their produce. The highest absolute increase in MSP over the previous year has been recommended for lentil (masur), rapeseeds and mustard (₹400 per quintal each) followed by gram (₹130 per quintal).
In case of safflower, there has been an increase of ₹114 per quintal, in comparison to last year. “The differential remuneration is aimed at encouraging crop diversification,” the statement said.
All-India weighted average
The statement mentioned that the present decision is in the 2018-19 budget announcement which provided for fixing the MSPs at a level of at least 1.5 times of the all-India weighted average cost of production.
The expected returns to farmers over their cost of production are estimated to be highest in case of wheat and rapeseed & mustard (100 per cent each), followed by lentil (79 per cent), gram (74 per cent); barley (60 per cent) and safflower (50 per cent).
“Concerted efforts were made over the last few years to realign the MSPs in favour of oilseeds, pulses and coarse cereals to encourage farmers shift to larger area under these crops and adopt best technologies and farm practices, to correct demand-supply imbalance,” the statement said.
The government expects that along with higher MSP, National Mission on Edible Oils-Oil Palm (NMEO-OP) will help in increasing the domestic production of edible oils and reduce imports dependency.
“With the total outlay of ₹11,040 crore, the scheme will not only aid in expanding area and productivity of the sector, but also benefit the farmers by increasing their income and generation of additional employment,” it said.
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