MSP for Rabi Crops

MSP for Rabi Crops

MSP for Rabi Crops

On 23rd October 2019, Government of India (GoI) approved to increase the Minimum Support Price (MSPs) for Rabi crops for the year 2019-20 and crops shipped for the 2020-21 Rabi Marketing Season (RMS). The raise for the MSPs were analysed and implemented by the Cabinet Committee on Economic Affairs (CCEA).

Objectives

  • To increase the MSP of Rabi crops for and during the Rabi Marketing Season
  • To increase the production of Rabi crops for the next season
  • To provide support for doubling the average cost production
  • To help increase the margin profit for the wheat farmers
  • Help reduce liability and loans availed from banks

Minimum Support Price (MSPs)

Minimum Support Price was initiated by the GoI to protect the agricultural producers during the decline of crop value. The MSPs are fixed prices that are announced by the government at the beginning of the sowing season. The MSPs will be provided through schemes for a long time investment and guarantee. The MSPs for crops are determined by:

  • The cost involved for production
  • Changes occurred in input prices
  • Changes in market prices
  • Increased demand and supply of crops
  • Increased requirement in the cost of living

Crops Covered for MSPs

S. No.

CropsTypes

1

Cereals

Paddy

Wheat

Barley

Jowar

Bajra

Maize and

Ragi

2

Pulses

Gram

Arhar or Tur

Moong

Urad

Lentil

3

Oilseeds

Groundnut

Rapeseed or mustard

Toria

Soybean

Sunflower Seed

Sesamum

Safflower Seed

Nigerseed

4

Raw Cotton

5

Raw Jute

6

Copra

7

De-husked coconut

8

Sugarcane

9

Virginia flu cured (VFC) tobacco

Benefits of increase in MSP

  • Increases MSPs for RMS for the year 2020-21
  • Meets the average cost of production at least 1.5 times
  • The wheat farmers are secured with 50 per cent of the margin profit
  • Doubles the farmers’ income and increases the welfare of the family
  • Increases the production for small and medium-scale farmers
  • The losses shall be covered by the Indian Government as per the guidelines

Support from State Governments

  • State Agencies and Food Corporation of India (FCI) shall provide financial support for farmers for cereals.
  • For grains, the State Government shall seek prior approval from NFSA for distribution of price support and subsidy
  • The NAFED, SFAC and other central agencies shall provide support for pulses and oilseeds

Support from Pradhan Mantri Annadata Aay SanraksHan Abhiyan (PM-AASHA)

To streamline and regularise the remunerative prices for the farmers, GoI introduced PM-AASHA scheme. Any remunerative support for the farmers shall be provided through the following umbrella schemes:

  • Price Support Scheme (PSS)
  • Price Deficiency Payment Scheme (PDPS) and
  • Private Procurement and Stockist Scheme (PPSS)

This scheme shall provide support for paddy, wheat and cash crops.

Minimum Support Prices (MSPs) for Rabi Marketing Season 2020-21

S. No

CropsCost of RMS (2020-21)MSP for RMS (2019-20)MSP for RMS (2020-21)Increased MSP Percentage of return over cost

1

Wheat9231840192585109

2

Barley919144015258566

3

Gram28014620487525574

4

Lentil27274478480032576

5

Rapeseed and mustard23234200442522590

6

Safflower34704945521527050

Scroll down to know more on the approval

MSP for Rabi Crops

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Post by Peter

Peter is a Senior Content Writer and Copy Editor in Finance specializing in GST and Import & Export. He has also written articles on Medical, Philosophy, and Literature and published research papers in international journals.