Centre announces hike in MSP for Kharif Crops

Union Cabinet approved an increase in Minimum Support Price (MSP) of Kharif crops for 2021-22, to increase farmers’ income.

Key Points

  • Centre has increased MSP for paddy by Rs It now stands at to Rs 1,940 per quintal for 2021-22 crop.
  • Highest absolute increase in MSP over previous year has been recommended for sesamum, followed by tur and urad.
  • MSP on groundnut and niger seed was increased by Rs 275 per quintal and Rs 235 per quintal, respectively.
  • Differential remuneration was fixed with the aim of encouraging crop diversification.

Background

MSP was increased for Kharif crops in line with Union Budget 2018-19 announcement of fixing MSPs at least 1.5 times of All-India weighted average Cost of Production (CoP).

Minimum Support Price (MSP)

MSP is the rate at which government buys grains from farmers. It is a price that government agencies pay while procuring particular crop. MSP is recommended by Commission for Agricultural Costs & Prices (CACP) for 22 mandated crops and fair & remunerative price (FRP) for sugarcane. 14 crops of kharif season, 6 crops of rabi season and 2 other commercial crops are mandated crops.

MSP crops

Crops on which MSP & FRP are recommended includes-

  1. Cereals- Paddy, wheat, jowar, bajra, barley, maize and ragi.
  2. Pulses- Gram, arhar or tur, urad, moong and lentil.
  3. Oilseeds- Groundnut, mustard, soyabean, toria, sunflower seed, safflower seeds, sesamum, and niger seed,
  4. Raw cotton, Copra, Raw jute, De-husked coconut, and
  5. Sugarcane

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