The Cabinet Committee on Economic Affairs (CCEA) chaired by Prime Minister Narendra Modi has approved the Minimum Support Prices (MSPs) for all mandated Rabi crops for marketing season 2021-22. The Government claimed that the increase in MSP was in line with the recommendations of Swaminathan Commission.
In view of nutritional requirements and changing dietary pattern and to achieve self-sufficiency in pulses and oilseeds production, the Government has fixed relatively higher MSP for these crops.
The highest increase in MSP has been announced for lentil (Rs. 300 per quintal) followed by gram and rapeseed & mustard (Rs. 225 per quintal each) and safflower (Rs. 112 per quintal). For barley and wheat, an increase of Rs. 75 per quintal and Rs 50 per quintal respectively has been announced. The differential remuneration is aimed at encouraging crop diversification.
MSP for all Rabi crops for marketing season 2021-22
|Crops||MSP for RMS 2020-21 (Rs/quintal)||MSP for RMS 2021-22 (Rs/quintal)||Increase in MSP (Rs/quintal)||Return over cost (in percent)|
|Rapeseed & Mustard||4425||4650||225||93|
In the case of cereals, Food Corporation of India (FCI) and other designated state agencies would continue to provide price support to the farmers. Government has set up a buffer-stock of pulses and domestic procurement of pulses is also being done under Price Stabilization Fund (PSF).
Despite global COVID-19 pandemic and consequent nationwide lockdown, timely intervention made by Government has led to an all-time record procurement of wheat at about 39 million tonnes for Rabi Marketing Season 2020-21. Around 43 lakh farmers benefitted under procurement operations period which is 22 percent higher than the RMS 2019-20. In 2019-20, 390 lakh tonnes of wheat, 15 lakh metric tonnes of pulses and 18 lakh metric tonnes of oilseeds is estimated to be procured under MSP.