The Business Bytes
TBB BUREAU
NEW DELHI, JUNE 8, 2022
In a bid to to ensure remunerative prices to the growers for their produce and to encourage crop diversification, the Union government on Wednesday hiked the minimum support price (MSP) for paddy by Rs 100 to Rs 2,040 per quintal for 2022-23 crop year from Rs 1,940 per quintal in the previous year.
The Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Narendra Modi, approved the increase in MSPs for all 14 kharif (summer) crops for 2022-23 crop year.
The MSP of 14 kharif crops has been increased in the range of Rs 92-523 per quintal.
The MSP of paddy and bajra has been increased by Rs 100 per quintal, while tur, urad and groundnut MSP has been hiked by Rs 300 per quintal each for 2022-23 crop year.
“Government has increased the MSP of kharif crops for 2022-23, to ensure remunerative prices to the growers for their produce and to encourage crop diversification,” an official statement said.
The increase in MSP for Kharif Crops for Marketing Season 2022-23 is in line with the Union Budget 2018-19 announcement of fixing the MSP at a level of at least 50 percent over the All-India weighted average Cost of Production, aiming at reasonably fair remuneration for the farmers. Notably, return over MSP for bajra, tur, urad sunflower seed, soybean and groundnut is more than 50 percent over the All-India weighted average Cost of Production at 85 percent, 60 percent, 59 percent, 56 percent, 53 percent and 51 percent respectively.
As per 3rd Advance Estimates for 2021-22, production of Foodgrains in the country is estimated at record 314.51 million tonnes which is higher by 3.77 million tonnes than the production of foodgrain during 2020-21. The production during 2021-22 is higher by 23.80 million tonnes than the previous five years’ (2016-17 to 2020-21) average production of foodgrains.
