India to raise minimum support price for rabi crops; wheat growers to benefit

Farmers-1.jpg

IAC photo by Parivartan Sharma

The Indian government said it was raising the minimum support price (MSP) for rabi crops that will hit the market in 2020-21, with the highest increase marked for lentils.

A government statement said that the increase in MSP was in line with the principle of fixing these prices at a level of at least 1.5 times of the all India weighted average cost of production, which was announced in the last annual budget.

“This MSP polic, whereby the farmers are assured of a minimum of 50 percent as margin of profit, is one of the important and progressive steps towards doubling farmers’ income by 2022 and improving their welfare substantively,” the statement said.

The highest increase in MSP has been recommended for lentil (Rs.325/quintal) followed by safflower (Rs.270/quintal) and gram (Rs.255/quintal), a major step towards increasing the income of farmers.

The MSP of rapeseed and mustard has been increased by Rs. 225/quintal. For both wheat and barley, the MSP has been increased by Rs. 85 per quintal, giving wheat farmers a return over cost of 109 percent.

MSPs) for Rabi Marketing Season 2020-21

Crops Cost* of production RMS 2020-21 MSP for RMS 2019-20 MSP   for RMS 2020-21 Absolute increase in MSP Returnover cost ( in per­cent) 
Wheat 923 1840 1925 85 109 
Barley 919 1440 1525 85 66 
Gram 2801 4620 4875 255 74 
Lentil 2727 4475 4800 325 76 
Rapeseed & Mustard 2323 4200 4425 225 90 
Safflower 3470 4945 5215 270 50

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