Amid the farmers protest, the Cabinet Committee on Economic Affairs, chaired by Prime Minister Narendra Modi, has approved increase in the minimum support price (MSPs) for all mandated Kharif crops for marketing season 2021-22 to ensure remunerative prices to the growers.
The MSP of paddy of both grades have been increased by Rs 72 per quintal, jowar by Rs 118, bajra by Rs 100, ragi by Rs 82, and arhar and urad by Rs 300 per quintal.
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 per cent) followed by urad (65 per cent) and tur (62 per cent). For rest of the crops, return to farmers over their cost of production is estimated to be at least 50 per cent.
The government said 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 the demand-supply imbalance.
The added focus on nutri-rich nutri-cereals is to incentivise its production in the areas where rice-wheat cannot be grown without long term adverse implications for the groundwater table.
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.
With an aim to attain self-sufficiency in the production of pulses, a special 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 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 programme 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.