In a bid to increase the farmers’ income, the Cabinet Committee on Economic Affairs on Wednesday approved an increase in minimum support prices (MSP) for various kharif crops or the summer-sown crops ranging between 50 per cent and 62 per cent for marketing season 2021-22.
The Centre has hiked paddy MSP by `72 to `1,940 per quintal for 2021-22 crop year from `1,868 per quintal last year. The highest absolute increase in MSP over the previous year has been recommended for sesamum (`452 per quintal) followed by tur and urad (`300 per quintal each).
The MSP is the rate at which the Government buys grains from the farmers to prevent exploitation and distress sale to private traders.
The price of common grade paddy has been increased from `1,868 a quintal to `1,940 a quintal, a rise of `72 a quintal. For grade A the support price has been increased from `1,888 a quintal to `1,960 a quintal, again an increase of `72 per quintal. Paddy is the main kharif crop, the sowing of which has begun with the onset of the Southwest monsoon. The hike is in sync with the Government’s plan to encourage farmers to go for coarse cereals (nutri-cereals), oilseeds and pulses in a big way.
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50-62% rise in MSP OK’d
to increase farmers’ income
Addressing a Press briefing on Cabinet decisions, Union Agriculture Minister Narendra Singh Tomar said, “None should have any misconception about MSP. It’s continuing and increasing and it will continue. The Cabinet has approved the MSP of 14 kharif crops for the 2021-22 crop year (July-June) and farmers would get 50-85 per cent returns over their cost of production.”
Dispelling apprehensions about the MSP, the Minister said there were doubts about the MSP a few months back when the new farm laws were passed in Parliament. At that time, both the Prime Minister and myself had assured that the MSP policy is there and will continue in future as well.
According to the Agriculture Ministry, over 816.65 lakh metric ton of paddy procured on MSP for ongoing kharif marketing season 2020-21 and rabi marketing season and 120.89 lakh farmers benefitted from the Government procurement.
Among kharif-grown oilseeds, the Government increased the support price maximum in the case of sesamum by `452 to `7,307 per quintal for the 2021-22 crop year, against `6,855 per quintal last year. The support price of groundnut also increased by `275 to `5,550 per quintal for the 2021-22 crop year, compared to `5,275 per quintal last year, while sunflower seed MSP has been increased by `130 to `6,015 per quintal from `5,885 per quintal.
Among the commercial crops, the MSP of cotton was increased by `211 per quintal to `5,726 for medium staple variety, and by Rs 200 per quintal to `6,025 for long-staple variety of cotton for the 2021-22 crop year (July-June).
The Government usually raises minimum support prices of crop twice a year, once ahead of the winter-sown or rabi season and the second time for the summer-sown kharif season that usually begins in June. The planting of the summer (kharif) crops like rice has so far covered 56.50 lakh hectare (ha) across the nation in the 2021-22 kharif season.