Minimum Support Prices (MSP) for Kharif Crops for Marketing Season 2021-22 Approved

The Cabinet Committee on Economic Affairs, chaired by Prime Minister Narendra Modi, has approved the increase in the Minimum Support Prices (MSPs) for all mandated Kharif crops for marketing season 2021-22 on 9 June 2021.

Government has increased the MSP of Kharif crops for marketing season 2021-22, to ensure remunerative prices to the growers for their produce. The highest absolute increase in MSP over the previous year has been recommended for sesamum (Rs. 452 per quintal) followed by tur and urad (Rs. 300 per quintal each). In case of groundnut and nigerseed, there has been an increase of Rs 275 per quintal and Rs 235 per quintal respectively in comparison to last year. The differential remuneration is aimed at encouraging crop diversification.

Minimum Support Prices for all Kharif crops for marketing season 2021-22 are as follows:

Crop

MSP 2020-21

MSP 2021-22

Cost* of production 2021-22 (Rs/quintal)

Increase in MSP (Absolute)

Return over cost (in per cent)

Paddy (Common)

1868

1940

1293

72

50

Paddy (GradeA)^  A)A

1888

1960

-

72

-

Jowar (Hybrid) (Hybrid)

2620

2738

1825

118

50

Jowar (Maldandi)^

2640

2758

-

118

-

Bajra

2150

2250

1213

100

85

Ragi

3295

3377

2251

82

50

Maize

1850

1870

1246

20

50

Tur (Arhar)

6000

6300

3886

300

62

Moong

7196

7275

4850

79

50

Urad

6000

6300

3816

300

65

Groundnut

5275

5550

3699

275

50

Sunflower Seed

5885

6015

4010

130

50

Soyabean (yellow)

3880

3950

2633

70

50

Sesamum

6855

7307

4871

452

50

Nigerseed

6695

6930

4620

235

50

Cotton (Medium Staple)

5515

5726

3817

211

50

Cotton (Long Staple)^

5825

6025

-

200

-

* Refers to comprehensive cost which includes all paid on costs such as those incurred on account of hired human labour, bullock labour machine labour, rent paid for leased in land, expenses incurred on use of material inputs like seeds, fertilizers, manures, irrigation charges, depreciation on implements and farm buildings, interest on working capital, diesel/electricity for operation of pump sets etc., miscellaneous expenses and imputed value of family labour.

^ Cost data are not separately compiled for Paddy (Grade A), Jowar (Maldandi) and Cotton (Long staple)

The increase in MSP for Kharif Crops for marketing season 2021-22 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 (CoP), aiming at reasonably fair remuneration for the farmers. The expected returns to farmers over their cost of production are estimated to be highest in case of Bajra (85%) followed by urad (65%) and tur (62%). For rest of the crops, return to farmers over their cost of production is estimated to be at least 50%.

Concerted efforts were made over the last few years to realign the MSPs in favour of oilseeds, pulses and coarse cereals to encourage farmers shift to larger area under these crops and adopt best technologies and farm practices, to correct demand - supply imbalance. The added focus on nutri-rich nutri-cereals is to incentivize its production in the areas where rice-wheat cannot be grown without long term adverse implications for groundwater table.

Besides, the Umbrella Scheme "Pradhan Mantri Annadata Aay Sanraks Han Abhiyan' (PM-AASHA) announced by the government in 2018 will aid in providing 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 & Stockiest Scheme (PPSS) on a pilot basis.

With an aim to attain self-sufficiency in the production of pulses, a special Kharif strategy has been prepared for implementation in the ensuing Kharif 2021 season. A detailed plan for both area expansion and productivity enhancement for Tur, Moong, and Urad has been formulated. Under the strategy, all the available high-yielding varieties (HYVs) of seeds will be distributed free of cost to increase area through intercropping and sole crop. Similarly, for Oilseeds, the Government of India has approved an ambitious plan for the free distribution of high-yielding varieties of seeds to the farmers for the Kharif season 2021 in the form of mini-kits. The special Kharif program will bring an additional 6.37 lakh hectare area under oilseeds and is likely to produce 120.26 lakh quintals of oilseeds and edible oil amounting to 24.36 lakh quintals.