Center raises MSP as kharif sowing begins
The increase in MSP for 17 crops was approved on June 8; this is likely to encourage farmers to diversify and switch to these crops
The Cabinet of the Union on June 8, 2022 approved an increase in the Minimum Support Prices (MSP) of various kharif crops for the 2022-23 marketing season.
Paddy, the main kharif crop, which is being sown at the moment, received a hike of Rs 100. The new MSP is now Rs 2,040 per quintal, up from Rs 1,940 in 2021-22.
The awards were approved by the Cabinet Committee on Economic Affairs (CCEA) chaired by Prime Minister Narendra Modi.
Among all the crops, sesame received the highest increase of Rs 523 – Rs 7,830 per quintal in 2022-23, against Rs 7,307 per quintal in 2021-22. Other oilseeds like groundnut, sunflower and soybean were also recommended MSP increases of Rs 300, Rs 385 and Rs 350 per quintal respectively.
Among pulses, moong (green gram) saw a sharp increase – Rs 7,755 per quintal, up from Rs 7,275 per quintal. Tur (pigeon pea) and Urad (black gram) saw an increase of Rs 300 per quintal each.
The increase in MSPs is likely to encourage farmers to diversify and switch to these crops, in the context of increasing imports of pulses and oilseeds in recent times.
Regarding oilseeds, the government hopes to reduce its dependence on palm oil imports by encouraging farmers to grow more other oilseeds.
India imports about 55% and 15% of its total domestic edible oil and pulse needs respectively.
The government said in a statement issued on June 8 that the increase in MSP was in line with the announcement in the 2018-2019 Union budget to set the MSP at a level of at least 50% of the cost of weighted average production of all India, aiming at a reasonably fair remuneration for the farmers.
“It should be noted that the yield against MSP for bajra (pearl millet), tur, urad sunflower seed, soybean and groundnut is more than 50% higher than the weighted average cost of production of any India at 85%, 60%, 59%, 56%, 53% and 51% respectively.
“Concerted efforts have been made over the past few years to realign the MSP in favor of oilseeds, pulses and coarse grains to encourage farmers to move larger areas under these crops and adopt the best technologies and practices. agriculture, in order to correct the imbalance between supply and demand”, It said.
A total of 17 crop MSP increases were approved on June 8. Maize is the only crop that received a hike below Rs 100 in absolute numbers. MSP for maize was approved at Rs 1,962 per quintal, up from Rs 1,870 per quintal in 2021-22 – an increase of Rs 92.
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