Cabinet increases MSP for Rabi crops; hikes wheat MSP by Rs 40 to Rs 2,015 per quintal

The Cabinet Committee on Economic Affairs (CCEA) chaired by the Prime Minister Narendra Modi on Wednesday approved the increase in the Minimum Support Prices (MSP) for all mandated Rabi crops for Rabi Marketing Season (RMS) 2022-23.

Government has increased the MSP of Rabi crops for RMS 2022-23, to ensure remunerative prices to the growers for their produce. The minimum support price for wheat has been hiked by Rs 40 to Rs 2,015 per quintal and for mustard seed by Rs 400 to Rs 5,050 per quintal for the current crop year.

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The increase in MSP for Lentil (Masur) is Rs 400 per quintal followed by gram of Rs 130 per quintal. In case of safflower, there has been an increase of Rs 114 per quintal, in comparison to last year. The differential remuneration 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 fanners.

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The expected returns to farmers over their cost of production are estimated to be highest in case of wheat and rapeseed and mustard (100% each), followed by lentil (79%); gram (74%); barley (60%); 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 shift to larger area under these crops and adopt best technologies and farm practices, to correct demand — supply imbalance.

Additionally, National Mission on Edible Oils-Oil Palm (NMEO-OP), Centrally Sponsored Scheme recently announced by the government, will help in increasing the domestic production of edible oils and reduce imports dependency.

With the total outlay of Rs 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.

The 'Pradhan Mantri Annadata Aay SanraksHan Abhiyan' (PM-AASHA) announced by the government in 2018 will aid in providing remunerative return to farmers for their produce.