CCEA approves MSP for Kharif Crops for Marketing Season 2022-23

NEW DELHI, 20 June 2022: The Cabinet Committee on Economic Affairs (CCEA) chaired by the Prime Minister Narendra Modi, has approved the increase in the Minimum Support Prices (MSP) for all mandated Kharif Crops for Marketing Season 2022-23.

Government has increased the MSP of Kharif Crops for Marketing Season 2022-23, to ensure remunerative prices to the growers for their produce and to encourage crop diversification, as provided in the table below.

Minimum Support Prices for all Kharif crops for Marketing Season 2022-23                                                                                                                                                                                                                                                  (INR per quintal)

Crop	MSP 2014-15	MSP 2021-22		MSP 2022-23	Cost* of production 2022-23	Increase in MSP (Absolute)	Return over cost (in per cent)
Paddy (Common)	1360	1940		2040	1360	100	50
Paddy (Grade A)^	1400	1960		2060	-	100	-
Jowar (Hybrid)	1530	2738		2970	1977	232	50
Jowar (Maldandi)^	1550	2758		2990	-	232	-
Bajra	1250	2250		2350	1268	100	85
Ragi	1550	3377		3578	2385	201	50
Maize	1310	1870		1962	1308	92	50
Tur (Arhar)	4350	6300		6600	4131	300	60
Moong	4600	7275		7755	5167	480	50
Urad	4350	6300		6600	4155	300	59
Groundnut	4000	5550		5850	3873	300	51
Sunflower Seed	3750	6015		6400	4113	385	56
Soyabean (yellow)	2560	3950		4300	2805	350	53
Sesamum	4600	7307		7830	5220	523	50
Nigerseed	3600	6930		7287	4858	357	50
Cotton (Medium Staple)	3750	5726		6080	4053	354	50
Cotton (Long Staple)^	4050	6025		6380	-	355	-

*Refers to cost which includes all paid out costs such as those incurred on account of hired human labour, bullock labour/machine labour, rent paid for leased in land, expenses incurred on use of material inputs like seeds, fertilizers, manures, irrigation charges, depreciation on implements and farm buildings, interest on working capital, diesel/electricity for operation of pump sets etc., miscellaneous expenses and imputed value of family labour. 

^ Cost data are not separately compiled for Paddy (Grade A), Jowar (Maldandi) and Cotton (Long staple) 

The increase in MSP for Kharif Crops for Marketing Season 2022-23 is in line with the Union Budget 2018-19 announcement of fixing the MSP at a level of at least 50 percent over the All-India weighted average Cost of Production, aiming at reasonably fair remuneration for the farmers. It is notable that, return over MSP for bajra, tur, urad sunflower seed, soybean and groundnut is more than 50 percent  over the All-India weighted average Cost of Production at 85 percent, 60 percent, 59 percent, 56 percent, 53 percent and 51 percent respectively.

Concerted efforts have been made over the last few years to realign the MSP in favour of oilseeds, pulses and coarse cereals to encourage farmers to shift larger area under these crops and adopt best technologies and farm practices, to correct demand – supply imbalance. 

As per 3^rd Advance Estimates for 2021-22, production of Foodgrains in the country is estimated at record 314.51 million tonnes which is higher by 3.77 million tonnes than the production of foodgrain during 2020-21. The production during 2021-22 is higher by 23.80 million tonnes than the previous five years’ (2016-17 to 2020-21) average production of foodgrains.