The centre has increased Minimum Support Prices (MSP) for Rabi crops for marketing season 2022-23. The return to farmers over their cost of production are estimated to be highest in case of wheat, rapeseed and mustard.
MSP is the rate at which the government buys grain from farmers. The government fixes MSPs for 23 crops grown in both kharif (summer) and rabi (winter) sowing seasons.
Sowing of rabi (winter) crops begins from October immediately after the harvest of kharif (summer) crops. Wheat and mustard are major rabi crops.
A decision in this regard was taken at a meeting of the Cabinet Committee on Economic Affairs (CCEA) chaired by Prime Minister Narendra Modi.
The Cabinet has raised the price it will pay to buy new-season wheat from farmers by Rs 40 or 2 percent to Rs 2,015 per quintal/100 kg for this crop year from Rs 1,975 per quintal in the 2020-21 crop year.
India is the world's second-biggest wheat consumer and sets a price each year to protect farmers from distress sales and to cover emergency needs.
The cost of production of wheat is estimated at Rs 1,008 per quintal, the release said.
The government procured a record wheat of over 43 million tonne during 2021-22 rabi marketing season, as per the official.
According to an official release, the CCEA has approved increase in the MSP for six rabi crops for the 2021-22 crop year (July-June) and 2022-23 marketing seasons.
The minimum support price (MSP) for mustard seed has been raised by Rs 400 to Rs 5,050 per quintal for the current crop year.