New Delhi, June 8: The government on Wednesday approved 5.15% year-on-year increase in minimum support price (MSP) for paddy (common) for the kharif marketing season 2022-23.
The MSP for paddy for the kharif marketing season is now fixed at Rs 2,040 per quintal as compared to Rs 1,940 in the previous season. The support price for paddy (grade A) has been increased from Rs 1,960 to Rs 2,060 per quintal.
Among 17 crops for which MSPs were raised by the Cabinet, the highest absolute increase of Rs 523 per quintal was approved for sesame.
Accordingly, the MSP for sesamum during kharif marketing season 2022-23 stands at Rs 7,830 per quintal, up 7.15% over the MSP in the previous year. The support price for sunflower seed has been raised to Rs 6,400 per quintal from Rs 6,015 per quintal.
The approved rates are in line with the principle of fixing the MSPs at a level of at least 1.5 times of the all India weighted average cost of production. Besides providing assured remunerative prices to farmers for their crops, the revised MSP is expected to increase investment and production in the sector and thus reduce imports.
An official statement on the cabinet decisions said that the increase in MSP for kharif crops for marketing season 2022-23 is in line with the Union Budget 2018-19 announcement of fixing the MSP at a level of at least 50 per cent over the All-India weighted average cost of production.
“It is notable that, return over MSP for bajra, tur, urad, sunflower seed, soybean and groundnut is more than 50 per cent over the All-India weighted average cost of production at 85 per cent, 60 per cent, 59 per cent, 56 per cent, 53 per cent and 51 per cent respectively,” the statement said.
It further noted that concerted efforts have been made over the last few years to realign the MSP in favour of oilseeds, pulses and coarse cereals to encourage farmers to shift larger area under these crops and adopt best technologies and farm practices, to correct demand-supply imbalance.
As per the decision of the Cabinet Committee on Economic Affairs (CCEA), the MSP for tur (arhar) dal for the kharif season 2022-23 is Rs 6,600 per quintal as compared to Rs 6,300 in the previous marketing season. For moong, the new MSP rate is Rs 7,755 per quintal.
As per 3rd Advance Estimates for 2021-22, production of foodgrains in the country is estimated at record 314.51 million tonnes which is higher by 3.77 million tonnes than the production of foodgrain during 2020-21.
The production during 2021-22 is higher by 23.80 million tonnes than the previous five years’ (2016-17 to 2020-21) average production of foodgrains.
