MSP increased for all Rabi crops for 2022-23

Cabinet Committee on Economic Affairs (CCEA) approved an increase in Minimum Support Prices (MSP) for all the mandated Rabi crops on September 8, 2021.

Highlights

MSP was increased for the Rabi Marketing Season (RMS) 2022-23 with the aim of realigning MSPs in favour of pulses, oilseeds, and coarse cereals. The Differential remuneration aims to encourage crop diversification.

Benefits of increased MSP

• This move will encourage farmers to shift to larger area under these crops and adopt best technologies & farm practices in order to correct the demand-supply imbalance.
• With this step, government seeks to ensure remunerative prices for the growers for farmer’s produce.

MSP rate

Highest absolute increase in MSP has been recommended. MSP has been increased by Rs 400 per quintal on each of lentil, rapeseeds and mustard. On gram, it was increased by Rs 130 per quintal while in case of safflower, it was increased by Rs 114 per quintal as compared to MSP in 2020.

Background

MSP for Rabi crops for RMS 2022-23 was increased in line with the Union Budget 2018-19 announcement. In budget it was announced to fix the MSPs at the level of at least 1.5 times of the all-India weighted average cost of production.

Other Steps by Government

1.   National Mission on Edible Oils-Oil Palm (NMEO-OP)

Government announced this centrally sponsored scheme recently to help in increasing the domestic production of edible oils and reduce imports dependency. It was announced with a total outlay of Rs 11,040 crore. Scheme will aid farmers in expanding area and productivity of the sector and benefit them by increasing their income and generation of additional employment.

2.   Pradhan Mantri Annadata Aay SanraksHan Abhiyan (PM-AASHA)

This scheme was announced in 2018 to aid farmers in providing remunerative return for their produce. It has three sub-schemes namely, Price Support Scheme (PSS), Private Procurement & Stockist Scheme (PPSS) and Price Deficiency Payment Scheme (PDPS).

Month: Current Affairs - September, 2021