homeeconomy NewsGovernment hikes minimum support price for 17 Kharif crops
Government hikes minimum support price for 17 Kharif crops
"In today’s cabinet meeting, MSP of 14 Kharif crops was approved," Information and Broadcasting Minister Anurag Thakur told reporters in New Delhi.
By CNBC-TV18 Jun 8, 2022 10:15:25 PM IST (Updated)
Listen to the Article(6 Minutes)
The Cabinet Committee on Economic Affairs, chaired by Prime Minister Narendra Modi, on Wednesday approved an increase in minimum support prices (MSP) for 17 Kharif crops for the 2022-23 marketing season.
The highest absolute increase in MSP over the previous year has been recommended for sesamum (Rs 523 per quintal), followed by moong (Rs 480 per quintal) and sunflower seed (Rs 385 per quintal).
Minimum Support Prices for all Kharif crops for Marketing Season 2022-23 (Rs per quintal)
Crop
MSP 2014-15
MSP 2021-22
MSP 2022-23
Cost* of production 2022-23
Increase in MSP (Absolute)
Return over cost (in percent)
Paddy (Common)
1360
1940
2040
1360
100
50
Paddy (Grade A)
1400
1960
2060
-
100
-
Jowar (Hybrid)
1530
2738
2970
1977
232
50
Jowar (Maldandi)
1550
2758
2990
-
232
-
Bajra
1250
2250
2350
1268
100
85
Ragi
1550
3377
3578
2385
201
50
Maize
1310
1870
1962
1308
92
50
Tur (Arhar)
4350
6300
6600
4131
300
60
Moong
4600
7275
7755
5167
480
50
Urad
4350
6300
6600
4155
300
59
Groundnut
4000
5550
5850
3873
300
51
Sunflower Seed
3750
6015
6400
4113
385
56
Soyabean (yellow)
2560
3950
4300
2805
350
53
Sesamum
4600
7307
7830
5220
523
50
Nigerseed
3600
6930
7287
4858
357
50
Cotton (Medium Staple)
3750
5726
6080
4053
354
50
Cotton (Long Staple)
4050
6025
6380
-
355
-
The MSP of the common grade variety of paddy has been increased to Rs 2,040 per quintal for the 2022-23 crop year from Rs 1,940 in the previous year. The support price of ‘A’ grade variety of paddy has been hiked to Rs 2,060 per quintal from Rs 1,960.
The increase in MSP for Kharif crops for the 2022-23 marketing season was in line with the Union Budget 2018-19 announcement of fixing the MSP at a level of at least 50 percent over the all-India weighted average cost of production, aiming at a reasonably fair remuneration for the farmers.
Paddy is the main Kharif crop, the sowing of which has already begun. The meteorological department has projected a normal monsoon for the June-September period.
The minister also highlighted several programmes launched during the last eight years by the Modi government to boost farmers’ income and ensure comprehensive growth of the farm sector.
S K Ghosh, Group Chief Economic Advisor to SBI, said, "MSP hike for the Kharif crops, there will be an upside pressure of 15 to 20 bps on inflation."
Aditi Nayar, Chief Economist, ICRA, said the absolute increase in the MSP is higher for oilseeds and pulses that are grown in the Kharif season as compared to cereals, "I think that is an appropriate thing to do. As we look at what are the items that are causing inflation right now, certainly oilseeds is a big issue."
"The other item that is causing us trouble on the inflation front is wheat. But it's a Rabi crop so very less we can do. For pulses, we have had a traditional import dependence. So, it is much better to really signal a shift for the farmers in terms of providing a more remunerative MSP for both oilseeds and pulses. So if I understood the absolute increases correctly, then I think this is very much in line," he added.