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)|
|5||Rapeseed & Mustard||2323||4200||4425||225||90|