MSP for All Rabi Crops Increased

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

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.

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%).

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.