Govt hikes support prices for Rabi crops for marketing season 2022-23

The Cabinet Committee on Economic Affairs (CCEA) chaired by the Prime Minister Narendra Modi approved the increase in the minimum support price (MSP) for all mandated Rabi crops. 

The highest absolute increase in MSP over the previous year has been recommended for Lentil (Masur) and Rapeseeds and Mustard (Rs400 per quintal each) followed by gram (Rs130 per quintal). In case of safflower, there has been an increase of Rs114 per quintal, in comparison to last year. The differential remuneration is aimed at encouraging crop diversification, says a cabinet release. 

The increase in MSP for Rabi crops for RMS 2022-23 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, ensuring a reasonably fair remuneration for the farmers. The expected returns to farmers over their cost of production are estimated to be highest in case of wheat and rapeseed and mustard (100 per cent each), followed by lentil (79 per cent), gram (74 per cent), barley (60 per cent), safflower (50 per cent).

The government has been making concerted efforts 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.

Additionally, the centrally sponsored National Mission on Edible Oils-Oil Palm (NMEO-OP), recently announced by the government, will help in increasing the domestic production of edible oils and reducing import dependency. With the total outlay of Rs11,040 crore, the scheme will not only aid in expanding area and productivity of the sector, but also benefit the farmers by increasing their income, besides generating additional employment.

The umbrella scheme "Pradhan Mantri Annadata Aay SanraksHan Abhiyan' (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, ie, Price Support Scheme (PSS), Price Deficiency Payment Scheme (PDPS) and Private Procurement and Stockist Scheme (PPSS) on a pilot basis.