On Wednesday, 9th June, the centre declared the surge in the minimum selling price(MSP) of 14 Kharif crops for the summer-sown season. MSP refers to a floor price determined by the Centre for crops aimed to avoid distress sales by signalling a minimum rate for private traders.
The upsurge is up to 6%, resulting in a Rs 72 per quintal rise for the most popular crop, paddy, from Rs 1,868 per quintal in 2020-21 to Rs 1,940 per quintal in the 2021-22 marketing season. Furthermore, sesamum has received the highest absolute increase in MSP over the previous year (Rs 452 per quintal), followed by tur and urad (Rs 300 per quintal each). Nonetheless, the expected returns to farmers over their production costs are reckoned to be highest in the case of Bajra (85%), followed by urad (65%), and tur (5%). (62 percent ). The return to farmers over their cost of production for the remaining crops is estimated to be at least 50%.
As far as groundnut and niger seed are concerned, in comparison to the previous year, the prices have risen by Rs 275 and Rs 235 per quintal respectively.
The increase coincides with the government’s goal of encouraging farmers to plant more coarse cereals (Nutri-cereals), oilseeds, and pulses. According to data issued by the agriculture ministry in March, the Kharif season saw 36.87 lakh hectares of rice planted, up 5.25 lakh hectares from the 2020-21 season.
The planting of the Kharif crops like rice has so far covered 56.50 lakh hectare (ha) across the nation in the 2021-22 Kharif season, according to a report by the agriculture ministry released in March.
The MSP increase comes as protests against the three farm laws continue. Farmers have urged that the government pass laws ensuring that all farmers get a remunerative MSP. Increases, according to Agriculture Minister Narendra Singh Tomar, debunk the assumption that the present MSP system would be dissolved once the new agricultural acts take effect. The significantly bigger increase in MSP for kharif pulses and oilseeds comes at a time when both commodities’ prices are substantially higher than last year due to limited output and a rise in international rates.