- A day after passage of two crucial farm Bills in the Parliament amid opposition pandemonium and allegations that farmer interests were being sacrificed,
- the Centre in Lok Sabha on Monday announced hikes in minimum support prices (MSPs) of six Rabi crops
- Ranging from 2% to 6% with lentils (pulses) and mustard (oilseed) getting the highest increases.
- It is seen as an attempt by the government to allay doubts from minds of farmers over the future of the support price in the wake of passing of the two farm Bills – one on Agri market and the other on contract farming.
- Records of the past 12 years show that the government had not made an announcement of MSPs for Rabi crops in September.
- The prices were either announced in October or later in November or even December.
- The wheat MSP has seen an increase of just 2.6 per cent — the lowest increase in 11 years.
- The MSPs for the other crops — barley, gram, lentil (masur), rapeseed and mustard, and safflower — too have seen a lower hike compared to last year.
- The MSP announcement gives a price signal to farmers ahead of the sowing season so that they can make the right choice of crop.
- The new MSPs were approved by the Cabinet Committee on Economic Affairs (CCEA), chaired by the Prime Minister.
- The new MSPs shows the government’s focus on pulses and oilseeds.
- The MSP for lentils (pulses) got the highest hike of 6.3% – from Rs 4,800 per quintal in 2019-20 to Rs 5,100 per quintal in 2020-21 – followed by mustard (5.1%), Barley (4.9%), Gram (4.6%), wheat (2.6%) and safflower (2.1%).
- The procurement on the basis of these MSPs will be made in the marking season of 2021-22, beginning April 1.
- In view of nutritional requirements and changing dietary pattern and to achieve self-sufficiency in pulses and oilseeds production, the government has fixed relatively higher MSP for these crops.
- The cost of production for arriving at new MSPs includes all paid out 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.
