The Union Govt announced a rise in the minimum support price (MSP) of key kharif crops by 4-5 percent on Wednesday, as part of the Centre’s attempt to alleviate concerns about controversial agricultural law.
MSPs for commodities such as paddy, cotton, jowar, bajra, maize, peanuts, and soyabean have been raised by 4-5 percent over last year’s prices.
As per Prime Minister Narendra Modi’s MSP policy, farmers are undoubtedly benefiting enormously from the scheme,’ agricultural minister Narendra Singh Tomar said during a press conference.
He emphasized the government’s position that the MSP procurement policy will not be repealed, despite widespread fears among farmers protesting at Delhi’s borders since November 2020 to remove the three farm bills passed by the Union government.
‘In the past, while reform discussions were continuing, both I and the PM had told everyone in the House (Parliament) that MSP is presently being implemented and will continue to be implemented,’ Tomar added.
MSP for common paddy has been raised to ₹ 1,940 per quintal, up from ₹ 1,868, while MSP for standard size cotton has been raised to ₹ 5,726 per quintal, up from ₹ 5,515 per quintal last year.
The government has promised farmers at least a 50% increase in returns over the average cost of cultivation.
Growers of bajra will benefit the most from the stated rates, with an 85 percent return on average cost of production at the MSP rate, followed by urad growers (65 percent ), and tur growers (65 percent ). (62 percent ). All other crops, such as paddy, cotton, soyabean, ragi, and maize, will yield 50% returns.
The government announces the modification of MSPs twice a year, once before the rabi (winter) and once before the kharif (monsoon) seasons.
All of these crops are water-intensive and must be planted before the monsoon winds sweep through the country.
The monsoon, which arrived in India three days late, is still moving quickly over the country. This year’s monsoon is expected to be slightly above average, which should boost the agricultural sector, which directly or indirectly employs over half of India’s population.