MSP approved for Rabi crops for 2022-23 higher or equal to 1.5 times the cost of production, says Agriculture Ministry

New Delhi [India], September 13 : The MSP approved for designated Rabi crops for the year 2022-23 during rabi marketing season is higher or equal to 1.5 times the cost of production, informed the Ministry of Agriculture and Farmers Welfare.
According to a statement issued by the ministry today, the expected returns to farmers over their cost of production is estimated to be highest in the case of wheat (100 per cent) and rapeseed/mustard (100 per cent), followed by lentil (79 per cent) and gram (74 per cent); barley (60 per cent); safflower (50 per cent).
The ministry further stated that the policies of the Government of India and decisions taken in recent years towards farmers' welfare have resulted in a significant improvement of food grain production and sustained agriculture growth despite the COVID-19 pandemic.
The Cabinet Committee on Economic Affairs (CCEA) chaired by Prime Minister Narendra Modi has approved the increase in the Minimum Support Prices (MSP) on September 8, 2021, for all designated Rabi crops for Rabi Marketing Season (RMS) 2022-23, when in advance of the sowing season.
MSP is an integral component of the Agriculture Price Policy and it targets to ensure support prices to farmers and affordable prices to the consumer.
Based on the recommendations of the Commission for Agricultural Costs and Prices (CACP), the Government of India declares MSP after considering the views of State Governments and Central Ministries/Departments concerned for agricultural crops such as Cereal, Pulses, Oilseeds and commercial crops every year at the beginning of the sowing season.
MSP is announced for the Kharif crops of Paddy, Jowar, Bajara, Ragi, Maize, Arhar, Moong, Urad, Cotton, Groundnut, Sunflower Seed, Soyabean, Sesamum.
The Rabi crops for which MSP is announced are Wheat, Barley, Gram, Masur, Rapeseeds and Mustard, Safflower and Toria. Apart from this, MSP is announced for Copra, De-husked Coconut, Jute and Fair Remunerative Prices (FRP) is announced for Sugarcane.
Normally MSP for Rabi season was announced in October. Last year it was announced on 23rd September and for the year 2022-23, it was further advanced and announced on 8th September 2021.
The factors considered by CACP for fixing MSP include cost of production, domestic and international prices, demand-supply conditions, inter-crop price parity, terms of trade between agricultural and non-agricultural sectors.
Procurement of agricultural produce of designated crops on MSP to ensure remunerative prices to the farmers is done in collaboration with the State Governments.
Procurement of wheat and Paddy at MSP comes under Schemes implemented by the Department of Food and Public Distribution (DFPD) through a centralized and de-centralized procurement mechanism. The procured Wheat and Paddy are utilized in distribution under Targeted Public Distribution System (TPDS) and other welfare schemes under National Food Security Act (NFSA).
Procurement of pulses and oilseeds is made at MSP as per the Schemes under the PM-AASHA scheme of the Department of Agriculture and Farmers Welfare (DA&FW). The procurement of Notified Pulses are done under the Price Support Scheme (PSS) by the Central Nodal Agencies through State designated Agencies during harvesting season. From 2015 onward the procurement of Pulses is also done at MSP for maintenance of National Buffer stock of Pulses under Price Stabilization Fund (PSF).
Procurement of Coarse grains is being done as per the existing scheme of the Department of Food and Public Distribution. Procurement of Cotton is done at MSP by the Cotton Corporation of India under the Scheme implemented by the Ministry of Textiles. The procurement of Copra is also being done under PSS in the Copra producing States based on the receipt of the proposal as per PSS guidelines under PM-AASHA.
As against the previous year procurement of 773.45 Lakh Metric Tonnes (LMT), over 879 LMTs of paddy procured on MSP for the ongoing season for 2020-21 benefitting about 130 Lakh farmers. Around 433.44 LMT wheat was procured for RMS 2021-22, against last year corresponding purchase of 389.93 LMT, benefitting about 49.20 Lakh farmers.
During the cropping year, 2020-21 which includes Kharif 2020-21, Rabi 2021 and Summer 2021 season, the Government through its Nodal Agencies has procured 12 LMT of pulses and oilseeds having an MSP value of Rs 6,742 Crores benefitting more than 7 lakh farmers.
During the current year, a quantity of 91,89,310 cotton bales valuing Rs. 26,719.51 crore has been procured from 18.86 lakhs cotton farmers.
Procurement operations under MSP continued despite disruptions in logistic activities during the initial days of lockdown in wake of the COVID pandemic. The number of procurement centres was increased as compared to previous years to facilitate the farmers for selling their produce at the nearest procurement centre maintaining COVID protocols.
During RMS 2021-22,a new chapter has been added in the history of procurement of foodgrains when the states of Haryana and Punjab also switched from indirect payment of MSP to direct online transfer to farmers' bank account. DBT of MSP has brought in transparency and real-time monitoring of the procurement operations.
Central Government is committed to continuing the MSP operations to ensure remunerative prices to the farmers, added the ministry.