Agriculture World

Government Increases Minimum Support Prices for Kharif Crops for Marketing Season 2020-21

Chander Mohan
Chander Mohan

The Cabinet Committee on Economic Affairs (CCEA) chaired by the Hon'ble Prime Minister Narendra Modi has approved increase in the Minimum Support Prices (MSPs) for all mandated Kharif crops for marketing season 2020-21.

The government has increased the MSP of Kharif crops for marketing season 2020-21, to ensure remunerative prices to the growers for their produce. The highest increase in MSP is proposed for nigerseed (Rs 755 per quintal) followed by sesamum (Rs 370 per quintal), urad (Rs 300 per quintal) and cotton (long staple) (Rs 275 per quintal). The differential remuneration is aimed at encouraging crop diversification. 

MSP for all Kharif crops for marketing season 2020-21: 

  

Sl. No 

Crops 

Projected Cost* KMS 2020-21 

MSP for Kharif 2020-21 

Increase in MSP (Absolute) 

  

Return over Cost (in %) 

Paddy (Common) 

1,245 

1,868 

53 

  

50 

Paddy (Grade A)^ 

1,888 

53 

  

Jowar (Hybrid) 

1,746 

2,620 

70 

  

50 

Jowar (Maldandi)^ 

2,640 

70 

  

Bajra 

1,175 

2,150 

150 

  

83 

Ragi 

2,194 

3,295 

145 

  

50 

Maize 

1,213 

1,850 

90 

  

53 

Tur (Arhar) 

3,796 

6,000 

200 

  

58 

Moong 

4,797 

7,196 

146 

  

50 

10 

Urad 

3,660 

6,000 

300 

  

64 

11 

Groundnut 

3,515 

5,275 

185 

  

50 

12 

Sunflower Seed 

3,921 

5,885 

235 

  

50 

13 

Soybean (yellow) 

2,587 

3,880 

170 

  

50 

14 

Sesamum 

4,570 

6,855 

370 

  

50 

15 

Nigerseed 

4,462 

6,695 

755 

  

50 

16 

Cotton (Medium Staple) 

3,676 

5,515 

260 

  

50 

17 

Cotton (Long Staple)^ 

5,825 

275 

  

 

Cost data are not separately compiled for Paddy (Grade A), Jowar (Maldandi) and Cotton (Long staple) 

The increase in MSP for Kharif Crops for marketing season 2020-21 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 (CoP), aiming at reasonably fair remuneration for the fanners. The expected returns to farmers over their cost of production are estimated to be highest in case of Bajra (83%) followed by urad (64%), tur (58%) and maize (53%). For rest of the crops, return to farmers over their cost of production is estimated to be at least 50%. 

Government’s strategy is one of promoting sustainable agriculture with diversified cropping pattern matching with the country's agro-climatic conditions, towards higher productivity without jeopardizing nation's bio-diversity. Support is in the form of MSP as well as procurement. Besides, with the intention of giving enough policy thrust to income security of the farmers. Government's production-centric approach has been replaced by income-centric approach.

Concerted efforts were made over the last few years to realign the MSPs in favour of oilseeds, pulses and coarse cereals to encourage farmers shift to larger area under these crops and adopt best technologies and farm practices, to correct demand - supply imbalance. The added focus on nutri-rich nutri-cereals is to incentivize its production in the areas where rice-wheat cannot be grown without long term adverse implications for groundwater table.

In continuation with the above-mentioned measures, Government is taking holistic approach towards supporting the farmers and facilitate farming related activities in the lockdown situation due to Covid 19. Efforts are being made to facilitate marketing of agricultural produce by the farmers. Advisories have been issued by the Union Government to State Governments / UT to facilitate Direct Marketing, enabling direct purchase from the fanners / FPOs / Cooperatives etc. by Bulk Buyers /Big Retailers / Processors by limiting regulation under State APMC Act. 

Besides, the Umbrella Scheme "Pradhan MantriAnnadataAaySanraksHanAbhiyan” (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 i.e. Price Support Scheme (PSS), Price Deficiency Payment Scheme (PDPS) and Private Procurement & Stockist Scheme (PPSS) on a pilot basis. 

In addition, under the Pradhan Mantri Kisan Samman Nidhi (PM-KISAN) Scheme during the lockdown period from 24.3.2020 till date, about 8.89 crore farmer families have been benefitted and an amount of Rs. 17,793 crore has been released so far.

In order to provide food security during the prevailing situation due to COVID-19 pandemic, the Government has decided to distribute pulses to the eligible households under Pradhan Mantri Garib Kalyan Yojana (PM-GKY). About 1,07,077.85 MT pulses have so far been issue/d to the States/UTs. 

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