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Farmers


Cabinet approves minimum support prices for Kharif Crops for marketing season 2021-22

Cabinet approves minimum support prices for Kharif Crops for marketing season 2021-22

The Cabinet Committee on Economic Affairs, chaired by Prime Minister Narendra Modi, has approved the increase in the Minimum Support Prices (MSPs) for all mandated Kharif crops for marketing season 2021-22.

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NEW DELHI, 9 June 2021: The Cabinet Committee on Economic Affairs, chaired by Prime Minister Narendra Modi, has approved the increase in the Minimum Support Prices (MSPs) for all mandated Kharif crops for marketing season 2021-22.

Government has increased the MSP of Kharif crops for marketing season 2021-22, to ensure remunerative prices to the growers for their produce. The highest absolute increase in MSP over the previous year has been recommended for sesamum (INR 452 per quintal) followed by tur and urad (INR 300 per quintal each). In case of groundnut and nigerseed, there has been an increase of INR 275 per quintal and INR 235 per quintal respectively in comparison to last year. The differential remuneration is aimed at encouraging crop diversification.

Minimum Support Prices for all Kharif crops for marketing season 2021-22 are as follows:

 

Crop

 

MSP 2020-21

 

MSP 2021-22

 

Cost* of production 2021-22 (INR/quintal)

 

Increase in MSP

(Absolute)

 

Return over cost (in per cent)

 

Paddy (Common)

 

1868

 

1940

 

1293

 

72

 

50

 

Paddy (GradeA)^

 

A)A

 

1888

 

1960

 

-

 

72

 

-

 

Jowar (Hybrid) (Hybrid)

 

2620

 

2738

 

1825

 

118

 

50

 

Jowar (Maldandi)^

 

2640

 

2758

 

-

 

118

 

-

 

Bajra

 

2150

 

2250

 

1213

 

100

 

85

 

Ragi

 

3295

 

3377

 

2251

 

82

 

50

 

Maize

 

1850

 

1870

 

1246

 

20

 

50

 

Tur (Arhar)

 

6000

 

6300

 

3886

 

300

 

62

 

Moong

 

7196

 

7275

 

4850

 

79

 

50

 

Urad

 

6000

 

6300

 

3816

 

300

 

65

 

Groundnut

 

5275

 

5550

 

3699

 

275

 

50

 

Sunflower Seed

 

5885

 

6015

 

4010

 

130

 

50

 

Soyabean (yellow)

 

3880

 

3950

 

2633

 

70

 

50

 

Sesamum

 

6855

 

7307

 

4871

 

452

 

50

 

Nigerseed

 

6695

 

6930

 

4620

 

235           

 

50

 

Cotton (Medium Staple)

 

5515

 

5726

 

3817

 

211

 

50

 

Cotton (Long Staple)^

 

5825

 

6025

 

-

 

200

 

-

 

* Refers to comprehensive cost which includes all paid on 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 2021-22 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 (CoP), aiming at reasonably fair remuneration for the farmers. The expected returns to farmers over their cost of production are estimated to be highest in case of Bajra (85 percent) followed by urad (65 percent) and tur (62 percent). For rest of the crops, return to farmers over their cost of production is estimated to be at least 50 percent.

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. The added focus on nutri-rich nutri-cereals is to incentivize its production in the areas where rice-wheat cannot be grown without long term adverse implications for groundwater table.

Besides, the Umbrella Scheme "Pradhan Mantri AnnadataAaySanraksHan Abhiyan' (PM-AASHA) announced by the government in 2018 will aid in providing remunerative return to farmers for their produce. The Umbrella Scheme consists of three sub-schemes i.e. Price Support Scheme (PSS), Price Deficiency Payment Scheme (PDPS) and Private Procurement & Stockist Scheme (PPSS) on a pilot basis.

With an aim to attain self-sufficiency in the production of pulses, a special Kharif strategy has been prepared for implementation in the ensuing Kharif 2021 season. A detailed plan for both area expansion and productivity enhancement for Tur, Moong, and Urad has been formulated. Under the strategy, all the available high-yielding varieties (HYVs) of seeds will be distributed free of cost to increase area through intercropping and sole crop.

Similarly, for Oilseeds, the Government of India has approved an ambitious plan for the free distribution of high-yielding varieties of seeds to the farmers for the Kharif season 2021 in the form of mini-kits. The special Kharif program will bring an additional 6.37 lakh hectare area under oilseeds and is likely to produce 120.26 lakh quintals of oilseeds and edible oil amounting to 24.36 lakh quintals.

Image credit: thestatesman.com


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