Govt enhances MSP for Rabi Crops of 2018-19 season

Speed Post News Network

New Delhi : Giving a boost to farmers’ income, the Cabinet Committee on Economic Affairs chaired by Prime Minister Narendra Modi on October 3, 2018, approved the increase in the Minimum Support Prices (MSPs) for all Rabi crops for 2018-19 to be marketed in 2019-20 season.

The farmer friendly initiative will give additional return to the farmers of Rs 62,635 crore by way of increasing MSP of notified crops to at least 50% return over cost of production and will aid in doubling farmers’ income.

The increase in the MSPs of wheat has been raised by Rs105 per quintal, safflower by Rs 845 per quintal, barley by Rs.30 per quintal, masur (lentil) by Rs 225 per quintal, gram by Rs 220 per quintal and rapeseed & mustard by Rs.200 per quintal is another major step in this regard, according to a PIB release.

The MSPs fixed by the government for wheat, barley, gram, masur, rapeseed & mustard and safflower are much higher than the cost of production. For wheat the cost of production is Rs 866 per quintal and MSP is Rs 1,840 per quintal which gives a return of 112.5 % over cost of production. For barley the cost of production is Rs 860 per quintal and MSP is Rs 1,440 per quintal giving a return of 67.4%. For gram cost of production is Rs 2,637 per quintal and MSP is Rs 4,620 per quintal giving a return of 75.2%. For masur cost of production is Rs 2,532 per quintal and MSP is Rs 4,475 per quintal giving a return of 76.7 %.

For rapeseed & mustard, the cost of production is Rs 2,212 per quintal and MSP is Rs 4,200 per quintal giving a return of 89.9 % and for safflower the cost of production is Rs 3,294 per quintal and MSP is Rs 4,945 per quintal giving a return of 50.1%.

With the new Umbrella Scheme “Pradhan Mantri Annadata Aay Sanrakshan Abhiyan’ (PM-AASHA) announced by the government, there is a robust mechanism available to enable farmers realise the MSP in fuller measure. The Umbrella Scheme consists of three sub-schemes i.e. Price Support Scheme (PSS), Price Deficiency Payment Scheme (PDPS) and Private Procurement & Stockist Scheme (PPSS) on a pilot basis.

The Government has decided to give additional guarantee of Rs 16,550 crore making the total government guarantee Rs 45,550 crore. In addition to this, budget provision for procurement operations has also been increased and Rs 15,053 crore has been sanctioned for the implementation of PM-AASHA.