The Cabinet Committee on Economic Affairs (CCEA), chaired by the Hon'ble Prime Minister Shri Narendra Modi, has approved the increase in the Minimum Support Prices (MSP) for all mandated Rabi crops for Rabi Marketing Season (RMS) 2022-23.
The government has increased the MSP of Rabi crops for RMS 2022-23 to ensure remunerative prices to the growers for their produce. 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 the case of safflower, there has been an increase of Rs.114 per quintal compared to last year. The differential remuneration is aimed at encouraging crop diversification.
The increase in MSP for Rabi Crops for RMS 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 the case of wheat and rapeseed & mustard (100% each), followed by lentil (79%); gram (74%); barley (60%); safflower (50%).
Concerted efforts were made over the last few years to realign the MSPs favouring oilseeds, pulses, and coarse cereals to encourage farmers to shift to the larger area under these crops and adopt best technologies and farm practices to correct the demand-supply imbalance.
Additionally, National Mission on Edible Oils-Oil Palm (NMEO-OP), Centrally Sponsored Scheme recently announced by the government, will help in increasing the domestic production of edible oils and reduce imports dependency. With the total outlay of Rs.11,040 crore, the scheme will aid in expanding the area and productivity of the sector and benefit the farmers by increasing their income and generation of additional employment.
The Umbrella Scheme "Pradhan Mantri Annadata Aay SanraksHan Abhiyan' (PM-AASHA) announced by the government in 2018 will aid in providing a remunerative return to farmers for their produce. The Umbrella Scheme consists of three sub-schemes, i.e. Price Support Scheme (PSS), Price Deficiency Payment Scheme (PDPS) and Private Procurement & Stockist Scheme (PPSS) on a pilot basis.