The government on Monday announced minimum support prices (MSP) for six rabi crops of 2020-21, to be marketed in rabi marketing season 2021-22.
The wheat MSP has seen an increase of just 2.6 per cent — the lowest increase in 11 years. The MSPs for the other crops — barley, gram, lentil (masur), rapeseed and mustard, and safflower — too have seen a lower hike compared to last year.
“The Cabinet Committee on Economic Affairs (CCEA) chaired by the Prime Minister Shri Narendra Modi has approved the increase in the Minimum Support Prices (MSPs) for all mandated Rabi crops for marketing season 2021-22,” said a statement. “This increase in MSP is in line with the recommendations of Swaminathan Commission.”
The statement shows that wheat MSP for the rabi crop of 2020-21 has been fixed at Rs 1,975 per quintal—2.6 per cent higher than Rs 1,925 in 2019-20. In percentage terms, the increase in wheat MSP is the lowest in 11 years. In 2009-10, wheat MSP was hiked by only 1.85 per cent—Rs 1,100 per quintal in 2009-10 against Rs 1,080 in 2008-09.
The highest increase in MSP has been for lentil (masur), according to the statement. It has been fixed at Rs 5,100 per quintal— 6.25 per cent or Rs 300 higher than in 2019-20. Last year, the lentil MSP was hiked by Rs 325 per quintal or 7.26 per cent.
The MSP for gram has been increased to Rs 5,100 per quintal—Rs 225 or 4.62 per cent higher than last year. Last year, it was hiked by Rs 255 per quintal or 5.52 per cent.
Rapeseed and mustard MSP has been hiked to Rs 4,650 per quintal in 2020-21, which is Rs 225 or 5.08 per cent higher than in 2019-20. In percentage terms, the hike is marginally lower than last year’s increase of 5.36 per cent.
MSP for safflower has been increased to Rs 5,327 per quintal—hiked by Rs 112 or 2.15 per cent over last year. It was hiked by Rs 270 or 5.46 per cent in last year.
The MSP for barley has seen an increase of Rs 75 (4.92 per cent) from Rs 1,525 per quintal in 2019-20 to Rs 1,600 in 2020-21.
“The increase in MSP for Rabi Crops for marketing season 2021-22 is in line with the principle of fixing the MSPs at a level of at least 1.5 times of the All-India weighted average Cost of Production as announced in Union Budget 2018-19,” the statement said.
“The expected returns to farmers over their cost of production are estimated to be highest in case of Wheat (106%) followed by rapeseed & mustard (93%), gram and lentil (78%). For barley, return to farmers over their cost of production is estimated at 65% and for safflower, it is 50%.”
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