According to an official release, the CCEA has approved an increase in MSP s for six rabi crops for the 2022-23 crop year (July-June) and the 2023-24 marketing season. The decision to increase the MSPs (minimum support prices) was taken at a meeting of the Cabinet Committee on Economic Affairs (CCEA) chaired by Prime Minister Narendra Modi.
Key Highlights
- The hiked in the minimum support price for wheat by ₹110 per quintal.
- The hiked in the minimum support price for mustard by ₹400 per quintal.
What is MSP?
Minimum Support Price (MSP) is a form of market intervention by the Government of India to insure agricultural producers against any sharp fall in farm prices. The minimum support price is an advisory price signal that is part of a larger set of agricultural policies in parts of India.
Why it is on NEWS ?
After taking into account all expenses incurred by farmers, such as labour, seeds, fertiliser, and working capital, the cost of production is estimated. In order to adequately compensate the farmers, the government stated in the union budget 2019–19 that the MSP, the price at which the government purchases crops from farmers, will be aligned at a level of at least 1.5 times the pan–India weighted average cost of production.
The Centre on Tuesday, October 18, 2022 hiked the minimum support price for wheat by ₹110 to ₹2,125 per quintal and mustard by ₹400 to ₹5,450 per quintal for the current crop year with an aim to boost production and income of the farmers.
MSP for wheat
The MSP for wheat was increased from Rs 2015 per quintal in 2022-23 to Rs 2125 per quintal for 2023-24. The average cost of production for the upcoming RMS is estimated at Rs 1065 per quintal, thus reflecting a return of 100 per cent on cost of production.
MSP for Mustard
Similarly, the MSP for mustard was increased from the previous Rs 5050 per quintal to Rs 5450 per quintal for 2023-24. Government estimated the average cost of production for RMS 2023-24 at Rs 2670, hence registering a return of 101 per cent.
MSP for Barley
The MSP for Barley and Gram were increased by Rs 100 per quintal and Rs 105 per quintal to Rs 1735 per quintal and Rs 5335 per quintal, respectively, for 2023-24.
MSP for Lentils
Lentils saw the highest increase in MSP. For RMS 2022-23, the MSP for lentils was at Rs 5500 per quintal, which has now increased to Rs 6,000 per quintal, registering a Rs 500 bump.
MSP for Sunflower
The MSP for Sunflower increased by Rs 209 per quintal and is now at Rs 5650 per quintal.
In a Nutshell
