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Cabinet Announces Generous Increase In MSP For Kharif Crops


Capital Market 

The Cabinet Committee on Economic Affairs (CCEA) chaired by the Hon'ble Prime Minister Narendra Modi has approved the increase in the Minimum Support Prices (MSPs) for all mandated Kharif crops for marketing season 2020-21. Government has increased the MSP of Kharif crops for marketing season 2020-21, to ensure remunerative prices to the growers for their produce.

The increase in MSP for Kharif Crops for marketing season 2020-21 is in line with the Union Budget 2018-19 announcement of fixing the MSPs at a level of at least 1.5 times of the All-India weighted average Cost of Production (CoP), aiming at reasonably fair remuneration for the farmers.

The expected returns to farmers over their cost of production are estimated to be highest in case of Bajra (83%) followed by urad (64%), tur (58%) and maize (53%). For rest of the crops, return to farmers over their cost of production is estimated to be at least 50%.

In percent terms, the MSP of Paddy (common) has been raised by 2.92% over the year to Rs 1868 per quintal while the MSP of Maize has been hiked by 5.11% to Rs 1850 per quintal. In Pulses, the Tur MSP has been raised by 3.44% to Rs 6000 per quintal while the MSP of Urad has been increased by 5.26% to Rs 6000 per quintal as well. Moong MSP has edged up by 2% to Rs 7196 per quintal.

In oilseeds, Soybean MSP is up by 4.58% to Rs 3880 per quintal while MSP of Nigerseed has been hiked by a sharp 12.71% to Rs 6695 per quintal. MSP of Cotton has been increased by 4.94% to Rs 5515 per quintal for Medium Staple variety while the Long Staple variety has seen an increase of 4.95% to Rs 5825 per quintal.

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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

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First Published: Mon, June 01 2020. 21:02 IST