In a move to increase farmers’ incomes, the Union Cabinet has decided to hike the Minimum Support Price (MSP) for Rabi crops for the marketing season 2020-21, the government announced on Wednesday.
“The increase in MSP for Rabi Crops for 2020-21 is 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 [CoP], which was announced in the Union Budget 2018-19,” the government said in a release.
“This MSP policy, whereby the farmers are assured of a minimum of 50% as margin of profit, is one of the important and progressive steps towards doubling farmers' income by 2022 and improving their welfare substantively,” it said.
The highest increase has been recommended for lentils (increase of ₹325 to ₹4,800 a quintal) followed by safflower (increase of ₹270 to ₹5215 a quintal) and gram (an increase of ₹255 to ₹4875).
The MSP of rapeseed & mustard has been increased by ₹225 to ₹4,425. For both wheat and barley, it has been increased by ₹85 to ₹1925 and ₹1525 per quintal, respectively.
“In the case of cereals, the Food Corporation of India and other designated State agencies would continue to provide price support to the farmers,” the government said. “State governments will undertake procurement of coarse grains with the prior approval of the Government and would distribute the entire procured quantity under National Food Security Act (NFSA). The subsidy will be provided only for the quantity issued under NFSA.”
