The Indian government announced it was raising the minimum support price (MSP) for kharif crops by 50 percent to ensure remunerative prices to the growers for their produce.
The government’s strategy is one of promoting sustainable agriculture with diversified cropping pattern matching with the country’s agro-climatic conditions, towards higher productivity without jeopardising nation’s bio-diversity, a government statement said.
“Support is in the form of MSP as well as procurement. Besides, with the intention of giving enough policy thrust to income security of the farmers. Government’s production-centric approach has been replaced by income-centric approach,” the statement added.
According to the statement, 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 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 groundwater table,” it said.
MSP for all Kharif crops for marketing season 2020-21
|Sl. No||Crops||Projected Cost* KMS 2020-21||MSP for Kharif 2020-21||Increase in MSP (Absolute)||Return over Cost (in %)|
|2||Paddy (Grade A)^||–||1,888||53||–|
|16||Cotton (Medium Staple)||3,676||5,515||260||50|
|17||Cotton (Long Staple)^||–||5,825||275||–|