Centre hikes MSP for 6 Rabi crops
Wheat, gram, lentil (Masur), rapeseed and mustard in the list; Govt enhances wheat MSP by Rs110 to Rs2,125/qtl, mustard by Rs400 to Rs5,450/qtl; Lentil gets maximum hike of Rs500/quintal
The government has ensured a 100% return over the cost of production in the case of wheat and mustard. Whereas in the other 4 Rabi crops, it's between 50 to 85% return over cost of production, said Anurag Thakur, I&B Minister
New Delhi: The Centre has hiked the minimum support price (MSP) for six Rabi crops like wheat, gram, lentils, rapeseed and mustard, among others, from Rs 100 to Rs 500 per quintal for the marketing season of 2023-24.
The decision to increase the MSPs (minimum support prices) of six rabi crops was taken at a meeting of the Cabinet Committee on Economic Affairs (CCEA) chaired by Prime Minister Narendra Modi on Tuesday came a day after Centre released the 12th installment of the Kisan Samman Nidhi in the accounts of farmers via direct benefit transfer.
The MSP for lentils has been hiked by Rs 500 per quintal, while the support price for rapeseed and mustard has been increased by Rs 400 per quintal.
Wheat MSP has been hiked by Rs 110 per quintal, safflower by Rs 209 per quintal, gram by Rs 105 per quintal and barley by Rs 100 per quintal, Minister for Information and Broadcasting Anurag Thakur told mediapersons after the meeting.
Under the MSP mechanism, the government fixes the minimum price for crops. Even if prices of certain crops fall, the Centre still purchases them from farmers at the MSP to insulate them from losses.
MSP is the rate at which the government buys grain from farmers. Currently, the government fixes MSPs for 23 crops grown in both the Kharif and Rabi seasons. Sowing of Rabi (winter) crops begins in October, immediately after the harvest of Kharif (summer) crops.
Wheat and mustard are major Rabi crops. According to an official release, the CCEA has approved an increase in MSPs for six Rabi crops for the 2022-23 crop year (July-June) and the 2023-24 marketing season (April-March). The absolute highest increase in MSP has been approved for lentil (Masur) by Rs 500 per quintal, followed by rapeseed and mustard by Rs 400 per quintal, it said. Wheat MSP has been increased by Rs 110 to Rs 2,125 per quintal for this crop year from Rs 2,015 per quintal in the 2021-22 crop year.
The cost of production of wheat is estimated at Rs 1,065 per quintal, the release said. Briefing media, Information and Broadcasting Minister Anurag Thakur said the government has ensured a 100 per cent return over the cost of production in the case of wheat and mustard. Whereas in the other four Rabi crops, it is between 50 to 85 per cent return over cost of production, he added. Asked if the hike in MSP of rabi crops would lead to food inflation, the minister said the inflation in India is under control in comparison with other countries.