A meeting of the Cabinet Committee on Economic Affairs (CCEA) chaired by Prime Minister Narendra Modi took the decision to increase the MSPs of six crops.
It is important to mention that the minimum support price is the rate at which the government purchases grain from farmers. At present, the government sets MSPs for 23 crops grown in Kharif as well as rabi seasons. The sowing of rabi (winter) crops starts in October, soon after the harvesting of Kharif (summer) crops.
An official government statement said that the Cabinet Committee on Economic Affairs has approved a hike in MSPs for 6 rabi crops for the 2022-23 crop year (July-June) & the 2023-24 marketing season.
#Cabinet approves the increase in the Minimum Support Prices (MSP) for 6 Rabi Crops for Marketing Season 2023-24.
— PIB India (@PIB_India) October 18, 2022
The increase in #MSP is in line with Union Budget 2018 announcement of fixing MSP at a level of at least 1.5 times of average cost of production pic.twitter.com/5PYQFUhTEU
MSP for Wheat has been increased by Rs 110 to Rs 2,125 / quintal for this crop year from the previous Rs 2,015 / quintal in 2021-22.
It further said that the cost of production of wheat is projected at Rs 1,065 per quintal.
The hike in MSP for Rabi Crops for 2023-24 Marketing Season is in line with the Union Budget 2018-19 announcement of fixing the minimum support price at a level of at least 1.5 times of the All-India weighted average Cost of Production, aiming at reasonably fair remuneration for the farmers.
The maximum rate of return is 104% for rapeseed and mustard, followed by 100% for wheat, 85% for lentil; 66% for gram; 60% for barley & 50% for safflower.
