The Union Cabinet on Wednesday approved an increase in the Minimum Support Price (MSP) for Rabi plants between 35 and 400 yen. These plants include wheat, gram, masur (lentils), among others. New prices apply for the Rabi marketing season 2022-23.
According to a government statement, this increase is intended to ensure that producers receive reasonable prices for their products. The highest absolute year-over-year increase in MSP is recommended for lentils (Masur), rapeseed, and mustard (₹ 400 per quintals each) followed by grams (₹ 130 per quintals).
In the case of safflower, an increase of 114 per quintals was recorded compared to the previous year. “The differential payment is intended to promote cultivation diversification,” the statement said.
Total India Weighted Average
The statement mentioned that the present decision was included in the 2018-19 budget announcement that set MSPs at a level of at least 1.5 times the weighted average cost of production for all of India.
The expected returns for farmers through their production costs are estimated to be highest for wheat and rapeseed and mustard (100 percent each), followed by lentils (79 percent), grams (74 percent); Barley (60 percent) and safflower (50 percent).
“In recent years there has been a concerted effort to realign MSPs in favor of oilseeds, legumes and coarse grains to encourage farmers to move to larger areas under these crops and use best technology and farming practices to address the imbalance to correct between demand and supply, ”the statement said.
The government expects that the National Mission on Edible Oils-Oil Palm (NMEO-OP), along with a higher MSP, will help increase domestic edible oil production and reduce reliance on imports.
“With a total spending of ₹ 11,040 billion, the program will not only help expand the area and productivity of the sector, it will also benefit farmers by increasing their incomes and creating additional jobs,” it said.
table
MSPs for all Rabi cultures for the 2022-23 marketing season (in ₹ / dinner)
|
plants |
MSP for RMS 2021-22 |
MSP for RMS 2022-23 |
Production costs * 2022-23 |
Increase in the MSP (Absolutely) |
Return over costs (in%) |
|---|---|---|---|---|---|
|
wheat |
1,975 |
2.015 |
1.008 |
40 |
100 |
|
Just |
1,600 |
1,635 |
1,019 |
35 |
60 |
|
Gram |
5,100 |
5,230 |
3,004 |
130 |
74 |
|
Lentils (Masuria) |
5,100 |
5,500 |
3,079 |
400 |
79 |
|
Rapeseed & mustard |
4,650 |
5,050 |
2,523 |
400 |
100 |
|
Safflower |
5,327 |
5,441 |
3,627 |
114 |
50 |
