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Cabinet approves Minimum Support Prices (MSP) for Kharif Crops for marketing season 2021-22

09 June 2021, New Delhi: The Cabinet Committee on Economic Affairs, chaired by Prime Minister Mr. Narendra Modi, has approved the increase in the Minimum Support Prices (MSPs) for all mandated Kharif crops for marketing season 2021-22.

Government has increased the MSP of Kharif crops for marketing season 2021-22, to ensure remunerative prices to the growers for their produce. The highest absolute increase in MSP over the previous year has been recommended for sesamum (Rs. 452 per quintal) followed by tur and urad (Rs. 300 per quintal each). In case of groundnut and nigerseed, there has been an increase of Rs 275 per quintal and Rs 235 per quintal respectively in comparison to last year. The differential remuneration is aimed at encouraging crop diversification.

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Minimum Support Prices for all Kharif crops for marketing season 2021-22 are as follows:

Crop MSP 2020-21 MSP 2021-22 Cost* of production 2021-22 (Rs/quintal) Increase in MSP(Absolute) Return over cost (in per cent) 
Paddy (Common) 1868 1940 1293 72 50 
Paddy (GradeA)^ A)A 1888 1960 – 72 – 
Jowar (Hybrid) (Hybrid) 2620 2738 1825 118 50 
Jowar (Maldandi)^ 2640 2758 – 118 – 
Bajra 2150 2250 1213 100 85 
Ragi 3295 3377 2251 82 50 
Maize 1850 1870 1246 20 50 
Tur (Arhar) 6000 6300 3886 300 62 
Moong 7196 7275 4850 79 50 
Urad 6000 6300 3816 300 65 
Groundnut 5275 5550 3699 275 50 
Sunflower Seed 5885 6015 4010 130 50 
Soyabean (yellow) 3880 3950 2633 70 50 
Sesamum 6855 7307 4871 452 50 
Nigerseed 6695 6930 4620 235            50 
Cotton (Medium Staple) 5515 5726 3817 211 50 
Cotton (Long Staple)^ 5825 6025 – 200 – 

* Refers to comprehensive cost which includes all paid on costs such as those incurred on account of hired human labour, bullock labour machine labour, rent paid for leased in land, expenses incurred on use of material inputs like seeds, fertilizers, manures, irrigation charges, depreciation on implements and farm buildings, interest on working capital, diesel/electricity for operation of pump sets etc., miscellaneous expenses and imputed value of family labour.

^ Cost data are not separately compiled for Paddy (Grade A), Jowar (Maldandi) and Cotton (Long staple)

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 (CoP), 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 (85%) followed by urad (65%) and tur (62%). For rest of the crops, return to farmers over their cost of production is estimated to be at least 50%.

Concerted efforts were made over the last few years to realign the MSPs in favour of oilseeds, pulses and coarse cereals to encourage farmers shift to larger area under these crops and adopt best technologies and farm practices, to correct demand – supply imbalance. The added focus on nutri-rich nutri-cereals is to incentivize its production in the areas where rice-wheat cannot be grown without long term adverse implications for groundwater table.

Besides, the Umbrella Scheme “Pradhan Mantri AnnadataAaySanraksHan Abhiyan’ (PM-AASHA) announced by the government in 2018 will aid in providing remunerative return to farmers for their produce. 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.

With an aim to attain self-sufficiency in the production of pulses, a special Kharif strategy has been prepared for implementation in the ensuing Kharif 2021 season. A detailed plan for both area expansion and productivity enhancement for Tur, Moong, and Urad has been formulated. Under the strategy, all the available high-yielding varieties (HYVs) of seeds will be distributed free of cost to increase area through intercropping and sole crop. Similarly, for Oilseeds, the Government of India has approved an ambitious plan for the free distribution of high-yielding varieties of seeds to the farmers for the Kharif season 2021 in the form of mini-kits. The special Kharif program will bring an additional 6.37 lakh hectare area under oilseeds and is likely to produce 120.26 lakh quintals of oilseeds and edible oil amounting to 24.36 lakh quintals.