Govt hikes MSP for winter crops in a bid to raise farmers’ income

The Union cabinet on Wednesday decided to hike the minimum support price (MSP) for rabi crops for the 2020-21 marketing season.

“The aim is to double the income of farmers by 2022,” said Union minister of environment, forest, and climate change Prakash Javadekar.

The MSP for both wheat and barley was increased by ₹85 per quintal. The MSP for wheat was raised from the existing ₹1,840 to ₹1,925, while for barley it was increased from ₹1,440 to ₹1,525.

The MSP for lentil was raised by ₹325 per quintal to ₹4,800, safflower by ₹270 to ₹5,215 per quintal, and gram by ₹255 per quintal to ₹4,875.

The MSP for rapeseed and mustard was increased by ₹225 per quintal each from ₹4,200 to ₹4,425.

The MSPs were announced taking into consideration the overall cost of production. As such, the return over the all-India weighted average cost of production will be 109% for wheat, 66% for barley, 74% for gram, 76% for lentil, 90% for rapeseed and mustard, and 50% for safflower.

The central government is committed to providing income security to farmers and had enhanced the coverage of the Pradhan Mantri Kisan Samman Nidhi (PM-KISAN) to all farmers to boost their income, contended the Union minister.

The PM-KISAN scheme was announced in the interim budget for 2019-20. Under this, small and marginal landholder farmer families with cultivable land of up to 2 hectares were assured ₹6,000 per year.

The decision to increase the MSP is also significant as the cost of agricultural inputs have been increasing and the gap between demand and supply widening, resulting in farmers across the country reeling under distress.

Punjab chief minister Captain Amarinder Singh criticized the Centre over the decision. “The increase announced by the Centre does not meet the expectations of the distressed farming community, nor is it adequate to meet the increase in agricultural input costs or address the root of the problem as identified by the Swaminathan Commission,” he said. The state had demanded a 50% hike over and above the comprehensive cost.

“The increase in the MSP of wheat will surely help farmers in Punjab, Haryana, Madhya Pradesh, and parts of Uttar Pradesh where wheat is procured. However, it’s quite unlikely to provide any benefit to farmers in West Bengal, Bihar, Jharkhand and Maharashtra,” said former agriculture secretary Siraz Hussain.