MSP hike for 17 crops was approved June 8; this is likely to encourage farmers to diversify and switch to these crops
The Union Cabinet June 8, 2022, approved an increase in Minimum Support Prices (MSP) of various kharif crops for the marketing season 2022-23.
Paddy, the main kharif crop, which is being sowed at the moment, received a hike of Rs 100. The new MSP is now Rs 2,040 per quintal, compared to Rs 1,940 in 2021-22.
The prices have been approved by the Cabinet Committee on Economic Affairs (CCEA) chaired by Prime Minister Narendra Modi.
Among all crops, sesamum received the sharpest hike of Rs 523 — Rs 7,830 per quintal in 2022-23, from 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) received a sharp increase — Rs 7,755 per quintal, from Rs 7,275 per quintal. Tur (pigeon pea) and Urad (black gram) saw a hike of Rs 300 per quintal each.
The increased MSPs are likely to encourage farmers to diversify and switch to these crops, amid an increase in imports of pulses and oilseeds in the recent times.
As far as oilseeds are concerned, the government has been hoping to reduce its dependence on imports of palm oil by encouraging farmers to take up more cultivation of other oilseeds.
India imports around 55 per cent and 15 per cent of its total domestic requirement of edible oil and pulses respectively.
The government said in a statement issued June 8, that the increase in MSP was in line with the Union Budget 2018-19 announcement of fixing the MSP at a level of at least 50 per cent 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 (pearl millet), tur, urad sunflower seed, soybean and groundnut is more than 50 per cent over the all-India weighted average cost of production at 85 per cent, 60 per cent, 59 per cent, 56 per cent, 53 per cent and 51 per cent 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,” it said.
In total, MSP hike for 17 crops was approved June 8. Maize is the only crop which has received a hike below Rs 100 in absolute numbers. The MSP for maize was approved at Rs 1,962 per quintal, compared to Rs 1,870 per quintal in 2021-22 — an increase of Rs 92.
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