You are here: Home » Budget » News
Business Standard

MSP regime underwent changes to assure price at 1.5 times making cost: FM

Stressed that the government is committed to farmers' welfare, Finance Minister Sitharaman said the MSP regime has undergone a "sea change" to assure price at least 1.5 times of production cost

Topics
MSP | Nirmala Sitharaman | Budget 2021

Press Trust of India  |  New Delhi 

Sitharaman
Finance Minister Nirmala Sitharaman

Stressed that the government is committed to farmers' welfare, Finance Minister on Friday said the regime has undergone a "sea change" to assure price at least 1.5 times of production cost with sharp increase in procurement of foodgrains and payment to farmers.

In her budget speech for the next fiscal, she said the procurement of crops like paddy, wheat, pulses and cotton has jumped manifold in the last six years.

"Our government is committed to the welfare of farmers. The (minimum support price) regime has undergone a sea change to assure price that is at least 1.5 times the cost of production across all commodities," Sitharaman said.

"The procurement has also continued to increase at a steady pace. This has resulted in increase in payment to farmers substantially," she said.

As the minister started highlighting the government's initiatives and achievements in the agriculture sector, opposition members started demanding repeal of three new farm laws.

Thousands of farmers, mainly from Punjab, Haryana and Western Uttar Pradesh, have been protesting at Delhi borders for more than two months seeking repeal of three laws and a legal guarantee of the

Sharing the procurement data and amount paid to farmers under MSP operation, Sitharaman said: "In case of wheat, the total amount paid to farmers in 2013-14 was Rs 33,874 crore. In 2019-20, it was Rs 62,802 crore."

In 2020-21, she said the amount paid to farmers is over Rs 75,000 crore.

"The number of wheat growing farmers that were benefited increased in 2020-21 to 43.36 lakh compared to 35.57 lakh in 2019-20. That much of an increase within one year," the finance minister said.

For paddy, Sitharaman said the amount paid in 2013-14 was Rs 63,928 crore. In 2019-20, this increased to Rs 1,41,930 crore. Even better in 2020-21, the minister said this is further estimated to increase to Rs 1,72,752 crore.

Number of paddy farmers benefitted increased from 1.2 crore in 2019-20 to 1.54 crore in 2020-21.

In pulses, Sitharaman said Rs 236 crore was paid to farmers in 2013-14. "In 2019-20, this was increased to Rs 8,285 crore. Now in 2020-21, it is at Rs 10,530 crore, more than 40 times increase from 2013-14."

Similarly, Rs 90 crore was paid in 2013-14 to cotton farmers while Rs 25,974 crore has been paid in 2020-21 as of January 27.

Dear Reader,


Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Mon, February 01 2021. 13:25 IST
RECOMMENDED FOR YOU