25-06-2021 | 15:45 PM
MSP for Kharif Crops
• The Central government approved new minimum support price of 14 Kharif (summer-sown) crops, giving a hike of Rs 72 per quintal to the most popular crop paddy from Rs 1,868 per quintal in 2020-21 to Rs 1,940 per quintal in 2021-22 marketing season.
Key Points:
• Highest absolute increase in MSP over the previous year has been recommended for sesamum, followed by tur and urad.
• MSP on groundnut and niger seed was increased by Rs 275 per quintal and Rs 235 per quintal, respectively.
• Differential remuneration was fixed with the aim of encouraging crop diversification.
About Minimum Support Price (MSP):
• MSP is a form of market intervention by the Govt. of India to insure agricultural producers against any sharp fall in farm prices.
• MSP is price fixed by GoI to protect the producer – farmers – against excessive fall in price during bumper production years.
• MSP is announced at the beginning of the sowing season for certain crops on recommendations by the Commission for Agricultural Costs and Prices (CACP) and announced by the Cabinet Committee on Economic Affairs (CCEA) chaired by the PM of India.
• The major objectives are to support the farmers from distress sales and to procure food grains for public distribution.
MSP crops:
• Cereals: Paddy, wheat, jowar, bajra, barley, maize and ragi.
• Pulses: Gram, arhar or tur, urad, moong and lentil.
• Oilseeds: Groundnut, mustard, soyabean, toria, sunflower seed, safflower seeds, sesamum, and niger seed.
• Raw cotton, Copra, Raw jute, De-husked coconut.
• Sugarcane.
