Cabinet Increases MSP of Rabi Crops for Marketing Season 2022-23

The Cabinet Committee on Economic Affairs (CCEA) chaired by the Hon'ble Prime Minister Narendra Modi has approved the increase in the Minimum Support Prices (MSP) for all mandated Rabi crops for the Rabi Marketing Season (RMS) 2022-23.

The 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 over the previous year has been recommended for Lentil (Masur) and Rapeseeds & Mustard (Rs.400 per quintal each) followed by gram (Rs.130 per quintal). In the 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.

Increase in MSP for Rabi Crops

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 the highest in the case of wheat and rapeseed & mustard (100% each), followed by lentil (79%); gram (74%); barley (60%); safflower (50%).

Concerted efforts were made over the last few years to realign the MSPs in favor of oilseeds, pulses, and coarse cereals to encourage farmers to shift to the larger areas under these crops and adopt the best technologies and farm practices, to correct the demand-supply imbalance.

NMEO-OP Centrally Sponsored Scheme

Additionally, 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 & reduce the imports dependency, with the total outlay of Rs.11, 040 crores, the scheme will not only aid in expanding area and productivity of the sector, but also benefit the farmers by increasing their income and generation of additional employment.

The Umbrella Scheme "Pradhan Mantri Annadata Aay SanraksHan Abhiyan' (PM-AASHA) announced by the government in 2018 will aid in providing the remunerative return to farmers for their produce. The Umbrella Scheme consists of three sub-schemes i.e. Price Support Scheme (PSS), Price Deficiency Payment Scheme (PDPS), and Private Procurement & Stockiest Scheme (PPSS) on a pilot basis.

Source: PIB