Global Economy

Govt announces MSP of rabi crops, highest increase of Rs 400/quintal in prices of mustard and masur

The Cabinet Committee on Economic Affairs (CCEA) chaired by the Prime Minister Narendra Modi has approved the increase in the Minimum Support Prices (MSP) for all mandated Rabi crops for Rabi Marketing Season (RMS) 2022-23. It has announced the highest increase of 8.6% in prices of mustard, while the second highest increase of 7.8% is in prices of masur. Both the prices of mustard and masur have hit their historic high levels due to production shortages.

Government has made the highest increase of Rs 400/quintal in the price of masur, which has the highest shortage among all other pulses in the country this year. The new MSP of masur is Rs 5500/quintal. Mustard is one of the important rabi crops among the oilseeds produced in the country. Mustard oil prices are ruling at record high levels for a year now due to supply shortages. Like masur, mustard prices have been increased by Rs 400/quintal to Rs 5050/quintal. Safflower support prices have been increased by Rs 114/quintal to Rs 5441/quintal.

MSP of wheat has been increased by Rs 40/quintal to Rs 2015/quintal. MSP of gram, the most important protein crop of the rabi season has been increased by Rs 130/quintal to Rs 5230/quintal.

The highest absolute increase in MSP over the previous year has been recommended for Lentil (Masur) and Rapeseeds & Mustard (Rs.400 per quintal each) followed by gram (Rs.130 per quintal). In case of safflower, there has been an increase of Rs.114 per quintal, in comparison to last year. “The differential remuneration is aimed at encouraging crop diversification. The increase in MSP for Rabi Crops for 2022-23 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, aiming a reasonably fair remuneration for the fanners. The expected returns to farmers over their cost of production are estimated to be highest in case of wheat, rapeseed and mustard (100% each), followed by lentil (79%); gram (74%); barley (60%); safflower (50%),” said a government release.

The release said that 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 areas under these crops and adopt best technologies and farm practices, to correct demand — supply imbalance.


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