India announces new support prices for winter crops amid controversy over new farm laws

India’s cabinet announced an increase in the minimum support prices (MSP) of all winter season crops, soon after approving key farm laws that stirred conjecture whether support prices will be discontinued.

The highest increase in MSP is for lentils (Rs 300/100 kg), followed by gram, rapeseed and mustard (Rs 225/100 kg) and safflower Rs 112/kg
Prices of wheat and barley have been increased by Rs 75/100 kg. 

Agriculture Minister Narendra Singh Tomar said that state agencies will continue to purchase farm produce at MSP as before.

Winter season sowing is to start in a couple of months.

The parliament’s upper house on Sunday approved the Farmers Produce Trade and Commerce (Promotion and Facilitation) Bill, 2020 and the Farmers (Empowerment and Protection) Agreement on Price Assurance and Farm Services Bill, 2020.

While the aim of these laws are to facilitate barrier-free trade of farm produce outside the markets notified under the various state Agriculture Produce Marketing Committees (APMC) laws, opposition leaders say they will result in dismantling of minimum support prices and trade manipulation by big business houses.

MSP for all Rabi crops for marketing season 2021-22

CropsMSP for RMS 2020-21 (Rs/quintal)MSP for RMS 2021-22 (Rs/quintal)Cost* of production 2021-22 (Rs/quintal)Increase in MSP (Rs/quintal)Return over cost (in per cent)
Lentil (Masur)48005100286430078
Rapeseed &Mustard44254650241522593

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