Govt approves increase in MSP for all mandated Kharif crops for current marketing season

The Cabinet Committee on Economic Affairs, chaired by Prime Minister Narendra Modi, has approved the increase in the Minimum Support Prices for all mandated Kharif crops for marketing season 2021-22. Briefing reporters in New Delhi after the Cabinet meeting, Agriculture Minister Narendra Singh Tomar said, government has increased the MSP of Kharif crops to ensure remunerative prices to the growers for their produce.

He said, the highest absolute increase in MSP over the previous year has been recommended for sesamum which is Rs 452 per quintal followed by tur and urad Rs 300 per quintal each. In case of groundnut, there has been an increase of Rs 275 per quintal and for niger seed, there has been an increase of Rs 235 per quintal in comparison to last year. The differential remuneration is aimed at encouraging crop diversification.

The increase in MSP for Kharif Crops for marketing season 2021-22 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, aiming at reasonably fair remuneration for the farmers.

The expected returns to farmers over their cost of production are estimated to be highest in case of Bajra which is 85 per cent followed by urad 65 per cent and tur 62 per cent. For the rest of the crops, return to farmers over their cost of production is estimated to be at least 50 per cent.



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