Cabinet approves hike in MSP for kharif crops for 2021-22

The decision was announced by Union Agriculture Minister Narendra Singh Tomar after the meeting of the Cabinet Committee on Economic Affairs, headed by PM Modi

In a bid to increase the farmers' income, the Union Cabinet on Wednesday approved an increase in minimum support prices (MSP) for various kharif crops or the summer-sown crops for marketing season 2021-22.

The Cabinet Committee on Economic Affairs, chaired by Prime Minister Narendra Modi, approved the increase in the MSPs for all summer-sown crops for Kharif marketing season 2021-22.

Along with the hike in paddy MSP the centre announced hike in the minimum support prices for all.

The highest absolute increase in MSP over the previous year has been recommended for sesamum (Rs452 per quintal) followed by tur and urad (Rs300 per quintal each).

MSP for groundnut and nigerseed has been increased by Rs275 per quintal and Rs235 per quintal, respectively, in comparison to last year. The differential remuneration is aimed at encouraging crop diversification, an official release said.

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, it added.

Union agriculture minister Narendra Singh Tomar announced the decision after the CCEA meeting.

Addressing a press briefing Tomar said, "None should have any misconception about MSP; it's continuing and increasing and it will continue."

"We had assured the Parliament that MSP will continue," he added.

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 government stated in a release.