What Is The Minimum Support Price Centre Hiked For Rabi Crops?

Minimum Support Price (MSP): For the next rabi season, the Centre has increased the minimum support price (MSP) for wheat to 2,015 per quintal, up 2% from last year's rate of 1,975 per quintal.

According to a statement on the decision of the Cabinet Committee on Economic Affairs on Wednesday, oilseeds and pulses such as mustard, safflower, and masoor dal witnessed greater MSP rises of up to 8% in an attempt to encourage crop diversification.

What is the Minimum Support Price (MSP)?

The MSP is the price at which the government pays farmers for their crops. Rates are now set for 23 crops, including six crops for the next rabi or winter season, which will begin planting in October.

Centre's Stance On MSP

Prime Minister Narendra Modi said that the government had made another major move in favour of farmers by raising rabi crop MSPs. Increased MSPs, he added, will guarantee farmers receive fair prices and encourage them to conduct seeding operations.

Agriculture Minister Narendra Singh Tomar said the government's commitment to the MSP system was demonstrated by Wednesday's decision.

The cost of production of wheat for the forthcoming marketing season of 2022-23 is 1,008 per quintal, according to the Centre, implying that the new MSP of 2,015 will result in a 100 per cent return.

Farmers of rapeseed and mustard, whose MSP increased by 8.6%, or ₹400 per quintal, to ₹5,050 per quintal, may expect a 100 per cent return.

Masoor dal also experienced a ₹400 per quintal increase, bringing the MSP for the lentil to 7.8% higher than last year, with a 79 per cent return on investment. The MSP for chana or gram rose by 2.5 per cent, resulting in a 74% return.

Mr Tomar stated that the government chose to set MSPs for all Kharif and rabi crops at least 1.5 times their production costs, which has helped farmers increase their revenue.

Farmers will profit from the Centre's move to purchase pulses and oilseeds in addition to wheat and rice.

The government also stated that over the past few years, concerted efforts have been made to realign MSPs in favour of oilseeds, pulses, and coarse cereals to encourage farmers to shift to larger areas under these crops and to adopt the best technologies and farm practices to correct the demand-supply imbalance.

Farm Unions' Stance on MSP

Farm unions argued that the rate of inflation is higher than the MSP increase for most crops, claiming that the MSP for wheat has decreased by 4% in real terms. They've also requested that MSP be protected under the law. Most farmers, it was also pointed out, would not receive the advantages since they were still unable to sell their crops at that cost.