Centre announces hike in MSP for Kharif Crops

June 10, 2021

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-

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

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