MSP for All Rabi Crops Increased

Relevance

• GS 3: Issues related to direct and indirect farm subsidies and minimum support prices

Context

• Cabinet Committee on Economic Affairs (CCEA) has approved the increase in the Minimum Support Prices (MSP) for all mandated Rabi crops for Rabi Marketing Season (RMS) 2022-23.

Key points

• Government has increased the MSP of Rabi crops for RMS 2022-23, to ensure remunerative prices to the growers for their produce.
• The highest absolute increase in MSP has been recommended for Lentil (Masur) and Rapeseeds & Mustard followed by gram.
• In case of safflower, there has been an increase of Rs.114 per quintal, in comparison to last year.
• The differential remuneration is aimed at encouraging crop diversification.
• The increase in MSP for Rabi crops for RMS 2022-23 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, aiming a reasonably fair remuneration for the fanners.
• The expected returns to farmers over their cost of production are estimated to be highest in case of wheat and rapeseed & mustard (100% each), followed by lentil (79%); gram (74%); barley (60%); safflower (50%).

Recent related steps by government

• National Mission on Edible Oils-Oil Palm (NMEO-OP), Centrally Sponsored Scheme recently announced by the government, will help in increasing the domestic production of edible oils and reduce imports dependency.
• “Pradhan Mantri Annadata Aay SanraksHan 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 Price Support Scheme (PSS), Price Deficiency Payment Scheme (PDPS) and Private Procurement & Stockist Scheme (PPSS) on a pilot basis.