The Cabinet has approved an increase in the minimum support price (MSP) for all mandated rabi crops for the marketing season 2023-24, according to union minister Anurag Thakur.
According to Union Information and Broadcasting Minister Anurag Thakur, the increases in the MSP for wheat and mustard have resulted in a two-fold increase in the returns on cost of production.
The cost of production is calculated after accounting for all costs incurred by farmers, such as labour, seeds, fertiliser, and working capital, among other things. In the union budget 2019-19, the government announced that the MSP, or the price at which the government purchases crops from farmers, will be set at at least 1.5 times the pan-India weighted average cost of production in order to fairly compensate farmers.
Union Cabinet chaired by PM Shri @narendramodi ji approves Minimum Support Prices for all Rabi Crops for Marketing Season 2023-24.
This is the absolute highest increase in MSP approved for lentil (Masur) at Rs.500/- per quintal. #CabinetDecisions pic.twitter.com/UEdv5C9w7g
— Kiren Rijiju (@KirenRijiju) October 18, 2022
For the RMS (rabi marketing season) 2023-24, the Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Narendra Modi, increased the MSP for wheat by Rs 110 per quintal and the MSP for mustard by Rs 400 per quintal.
The government raised the MSP for lentils by Rs 500, the most of any crop. According to Union Information and Broadcasting Minister Anurag Thakur, the increases in the MSP for wheat and mustard have resulted in a two-fold increase in the returns on cost of production.
For 2023-24, the MSP for barley and gramme was increased by Rs 100 per quintal and Rs 105 per quintal, respectively, to Rs 1735 per quintal and Rs 5335 per quintal. MSP increased the most for lentils. The MSP for lentils was Rs 5500 per quintal in RMS 2022-23, but it has now increased to Rs 6,000 per quintal, a Rs 500 increase. Safflower MSP has increased by Rs 209 per quintal to Rs 5650 per quintal.
The MSP is a minimum price guarantee that farmers can use as a safety net or insurance when selling specific crops. These crops are purchased by government agencies at a guaranteed price to farmers, and the MSP cannot be changed under any circumstances. As a result, the concept of MSP protects farmers in the country when crop prices fall dramatically. Wheat and rice are two of the most important crops purchased by the government at MSP from the country’s farmers.
On the other hand, The Farmers Produce Trade and Commerce (Promotion and Facilitation) Bill, 2020 allows farmers to sell their produce outside of APMC mandis to whoever offers a higher price, including the end customer. The Farmers (Empowerment and Protection) Agreement on Price Assurance and Farm Services Bill, 2020, allows farmers to enter into a contract farming agreement with the buyer for crop procurement at pre-approved prices. The third bill, The Essential Commodities (Amendment) Bill, declassifies items such as onions, cereals, pulses, potatoes, edible oilseeds, and oils as essential under normal conditions.
