The Cabinet Committee on Economic Affairs, chaired by Prime Minister Shri Narendra Modi, has approved the increase in the Minimum Support Prices (MSPs) for all mandated Kharif crops for marketing season 2021-22.
The Centre has hiked the minimum support price (MSP) for common paddy to Rs.1,940 per quintal for the upcoming Kharif season, less than 4% higher than last year’s price of Rs.1,868. The decision was taken by the Cabinet Committee on Economic Affairs on Wednesday. The MSP is the rate at which the government purchases crops from farmers, and is based on a calculation of at least one and a half times the cost of production incurred by farmers.
There were slightly higher increases in the MSPs for pulses, oilseeds and coarse cereals. Tur and urad dal both saw MSPs rise by Rs.300, a 5% increase to Rs.6,300 per quintal. Groundnut and nigerseed saw increases of Rs.275 and Rs.235 per quintal respectively. However, maize saw a minimal hike of just Rs.20 to Rs.1,870 per quintal.
The announcement comes in the midst of a protest by farmers demanding that MSPs be given a legal guarantee, and also demanding a repeal of three contentious agricultural reform laws. Briefing the press after the Cabinet meeting, Agriculture Minister Narendra Singh Tomar reiterated that MSPs are here to stay, adding that the Centre is ready for talks with protesting farmers.
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