New Delhi: The Government on Wednesday announced an increase in the Minimum Support Price (MSP) of Kharif Paddy (common) by Rs 72 per quintal and that of Bajra by Rs 100 per quintal.
The Cabinet Committee on Economic Affairs, chaired by Prime Minister Narendra Modi, on Wednesday approved the increase in the Minimum Support Prices (MSPs) for all mandated Kharif crops for marketing season 2021-22.
The Government has also decided to increase the MSP of pulses, oilseeds, maize and some other crops.
Briefing mediapersons about the decision, Union Minister of Agriculture & Farmers' Welfare Narendra Singh Tomar said the MSP of Paddy (common) has been increased from Rs 1868 to Rs 1940 per quintal. MSP of Bajra has been increased from Rs 2150 to Rs 2250 per quintal.
Government has increased the MSP of Kharif crops for marketing season 2021-22, to ensure remunerative prices to the growers for their produce, Mr Tomar said.
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), he said.
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.
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 per cent) followed by urad (65 per cent) and tur (62 per cent).For rest of the crops, return to farmers over their cost of production is estimated to be at least 50 per cent.