Minimum Support Price increased for 6 Rabi crops after approval from Cabinet

2022-10-20 | Priyanka Chaudhary

The Cabinet Committee on Economic Affairs (CCEA) and Union Cabinet approved an increase in MSP for 6 Rabi Crops for marketing season 2023-24. These crops are Wheat, Barley, Gram, Lentils, Mustard and Safflower. The maximum increase in MSP has been announced for Lentils i.e. Rs. 500.

The recommendations of the Commission for Agricultural Costs and Prices (CACP) including an increase in MSP up to 9% on 6 Rabi crops have been accepted by the Union Cabinet.

To fulfill its promise made in Budget 2018-19 to increase the MSP to 1.5 times the cost of production in India, the government has taken this step.

MSP for 6 Rabi Crops Increased

Minimum Support Price (MSP)

The central government announces a minimum price for the crops to shield the farmers from loss. This minimum price is called MSP. Whenever the market price falls below MSP, the government procures the crops from the farmers to protect them from losses.

It was first started during the 60s for wheat so that government could buy wheat from farmers and through the PDS scheme distribute it to the poor people.

The Commission for Agricultural Costs and Prices recommends the Minimum Support Price on 22 crops and Fair Remunerative Price on sugarcane. It is a department of the Ministry of Agriculture. It came into existence in January 1965.

MSP is fixed by the government for 23 crops (including FRP for sugarcane) grown in both Kharif and Rabi seasons. These crops are as follows:

Government initiatives to increase agricultural production

The government has launched many initiatives to promote pulses and oilseed production. The production of oilseeds increased from 27.51 million tonnes in 2014-15 to 37.70 million tonnes in 2021-22. One such initiative is the Seed Minikits programme- a tool for introducing new varieties of seeds. It has increased the seed replacement rate.

The government is also putting efforts to increase the adoption of smart farming methods via using technology and innovation in the agriculture sector.

Digital Agriculture Mission (DAM) that includes India Digital Ecosystem of Agriculture (IDEA), Farmers Database, Unified Farmers Service Interface (UFSI), Funding to the States on the new Technology (NeGPA), Revamping Mahalanobis National Crop Forecast Centre (MNCFC), Soil health, Fertility, and profile mapping, is being implemented by the government.

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