MANU/PIBU/3970/2021

Department/Board : Press Information Bureau

Date : 13.09.2021

Minimum support price for agriculture crops

The MSP approved for designated Rabi Crops for 2022-2023 during Rabi Marketing Season is higher or equal to 1.5 times of cost of production

The expected returns to farmers over their cost of production is estimated to be highest in case of Wheat (100%) and rapeseed/mustard (100%), followed by lentil (79%) and gram (74%); barley (60%); safflower (50%)

The policies of Government of India and decision taken in recent years towards farmers' welfare have resulted insignificant improvement of food grain production and sustained agriculture growth despite COVID-19 pandemic. The Cabinet Committee on Economic Affairs (CCEA) chaired by the Hon'ble Prime Minister Shri Narendra Modi has approved the increase in the Minimum Support Prices (MSP) on 8th September 2021 for all designated Rabi crops for Rabi Marketing Season (RMS) 2022-23, when in advance of the sowing season.

MSP is an integral component of Agriculture Price Policy and it targets to ensure support price to farmers and affordable prices to the consumer. Based on the recommendations of the Commission for Agricultural Costs and Prices (CACP), the Government of India declares MSP after considering the views of State Governments and Central Ministries/Departments concerned for agricultural crops such as Cereal, Pulses, Oilseeds and commercial crops every year at the beginning of the sowing season. MSP is announced for the Kharif crops of Paddy, Jowar, Bajara, Ragi, Maize, Arhar, Moong, Urad, Cotton, Groundnut, Sunflower Seed, Soyabean, Sesamum. The Rabi crops for which MSP is announced are Wheat, Barley, Gram, Masur, Rapeseeds & Mustard, Safflower and Toria. Apart from this, MSP is announced for Copra, De-husked Coconut, Jute and Fair Remunerative Prices (FRP) is announced for Sugarcane.

Normally MSP for Rabi season was announced in October. Last year it was announced on 23rd September and for the year 2022-23 it was further advanced and announced on 8th September 2021.

The factors considered by CACP for fixing MSP include cost of production, domestic and international prices, demand-supply conditions, inter-crop price parity, terms of trade between agricultural and non-agricultural sectors.

The MSP approved for designated Rabi Crops for 2022-23 during Rabi Marketing Season is higher or equal to 1.5 times of cost of production. The expected returns to farmers over their cost of production is estimated to be highest in case of Wheat (100%) and rapeseed/mustard (100%), followed by lentil (79%) and gram (74%); barley (60%); safflower (50%).