Speed Post News Network
New Delhi : The policies of Government of India (GoI) and decision taken in recent years towards farmers’ welfare have resulted in significant improvement in foodgrains production and sustained agriculture growth despite Covid-19 pandemic. The Cabinet Committee on Economic Affairs (CCEA) chaired by PM Narendra Modi approved the increase in the Minimum Support Prices (MSP) on September 8, 2021, for all designated Rabi crops for Rabi Marketing Season (RMS) 2022-23, in advance of the sowing season.
MSP is an integral component of Agriculture Price Policy and it targets to ensure support price to farmers and affordable prices to the consumer.Based on the recommendations of the Commission for Agricultural Costs and Prices (CACP), the Government of India declares MSP after considering the views of State Governments and Central Ministries/Departments concerned for agricultural crops such as Cereal, Pulses, Oilseeds, and commercial crops every year at the beginning of the sowing season.
MSP is announced for the Kharif crops of Paddy, Jowar, Bajara, Ragi, Maize, Arhar, Moong, Urad, Cotton, Groundnut, Sunflower Seed, Soyabean, Sesamum . The Rabi crops for which MSP is announced are : Wheat, Barley, Gram, Masur, Rapeseeds & Mustard, Safflower and Toria. Apart from this, MSP is announced for Copra, De-husked Coconut, Jutewhile Fair Remunerative Prices (FRP) is announced for Sugarcane, according to a PIB release.
Normally MSP for Rabi season is announced in October.Last year, it was announced on September 23 and for the year 2022-23 it was further advanced and announced on September 8, 2021.
The factors considered by CACP for fixing MSP include cost of production, domestic and international prices, demand-supply conditions, inter-crop price parity, terms of trade between agricultural and non-agricultural sectors.
The MSP approved for designated Rabi Crops for 2022-23 during Rabi Marketing Season is higher or equal to 1.5 times of cost of production. The expected returns to farmers over their cost of production is estimated to be highest in case of Wheat (100%) and rapeseed/mustard (100%), followed by lentil (79%) and gram (74%); barley (60%); safflower (50%).
Procurement of agriculture produce of designated crops on MSP to ensure remunerative prices to the farmers is done in collaboration with the State Governments.
Procurement of Wwheat and Paddy at MSP comes under Schemes implemented by Deptt. of Food & Public Distribution (DFPD) through centralized and de-centralized procurement mechanism. The procured Wheat and Paddy is utilised in distribution under Targeted Public Distribution System (TPDS) and other welfare schemes under National Food Security Act (NFSA).
Procurement of pulses and oilseeds is made at MSP as per the Schemes under PM-AASHA scheme of DA&FW. The procurement of Notified Pulses are done under Price support Scheme (PSS) by the Central Nodal Agencies through State designated Agencies during harvesting season. Since 2015 onward, the procurement of Pulses is also done at MSP for maintenance of National Buffer stock of Pulses under Price Stabilization Fund (PSF).
Procurement of Coarse grains is being done as per the existing scheme of Department of Food and Public Distribution. Procurement of Cotton is done at MSP by the Cotton Corporation of India under the Scheme implemented by Ministry of Textiles. The procurement of Copra is also being done under PSS in the Copra producing States based on the receipt of the proposal as per PSS guideline under PMAASHA.
As against previous year procurement of 773.45 LMT, over 879 LMTs of paddy has been procured on MSP for ongoing season for 2020-21 benefitting about 130 Lakh farmers. Around 433.44 LMT wheat was procured for RMS 2021-22, against the last year corresponding purchase of 389.93 LMT benefitting about 49.20 Lakh farmers.