New Delhi, October 3: A day after protesting farmers under the aegis of Bharatiya Kisan Union rocked the national capital with their agitation, the Narendra Modi government has taken steps to placate the agrarian distress. In a major decision, the Union Cabinet chaired by the Prime Minister approved fresh hike in the minimum selling prices (MSP) of Rabi crops.
The hike in MSP will cost the exchequer an additional amount of Rs 62,635 crore. Farmers producing these six crops - Wheat, Barley, Rapeseed & Mustard, Safflower, Gram, Masur (Lentil) - are set to be benefit by as high as 112.5 per cent on the cost of production. MSP Hiked For Rabi Crops, Minimum Support Prices of Wheat Increased by Rs 105 Per Quintal.
The per quintal-MSP of wheat has been raised by Rs. 105, safflower by Rs 845, barley by Rs 30, masur (lentil) by Rs 225, gram by Rs 220 and rapeseed & mustard by Rs 200.
Key Facts to Know:
- The MSPs fixed by the government for wheat, barley, gram, masur, rapeseed & mustard and safflower are much higher than the cost of production.
- For wheat the cost of production is Rs 866 per quintal and MSP is Rs 1840 per quintal which gives a return of 112.5 per cent over cost of production;
- For barley the cost of production is Rs 860 per quintal and MSP is Rs 1440 per quintal giving a return of 67.4 per cent;
- For gram cost of production is Rs 2637 per quintal and MSP is Rs 4620 per quintal giving a return of 75.2 per cent;
- For masur cost of production is Rs 2532 per quintal and MSP is Rs 4475 per quintal giving a return of 76.7 per cent;
- For rapeseed & mustard the cost of production is Rs 2212 per quintal and MSP is Rs 4200 per quintal giving a return of 89.9 per cent and
- For safflower the cost of production is Rs 3294 per quintal and MSP is Rs 4945 per quintal giving a return of 50.1 per cent.
New MSP List 2018 For Rabi Crops:
|Crop||MSP||MSP||Cost of production
|Increase in MSP||Return over cost*
(in per cent)
|(Rs/ quintal)||(Rs/ quintal)||Absolute||%|
|Rapeseed & Mustard||4000||4200||2212||200||5.0||89.9|
The government had recently launched the umbrella scheme - Pradhan Mantri Annadata Aay SanraksHan Abhiyan (PM-AASHA), with the aim of providing farmers the MSP rate even in the remotest parts of the nation.
The Umbrella Scheme consists of three sub-schemes i.e. Price Support Scheme (PSS), Price Deficiency Payment Scheme (PDPS) and Private Procurement & Stockist Scheme (PPSS) on a pilot basis.
The Centre has decided to give additional guarantee of Rs.16,550 crore making the total government guarantee Rs. 45,550 crore. In addition to this, budget provision for procurement operations has also been increased and Rs. 15,053 crore is sanctioned for the implementation of PM-AASHA.
(With PIB inputs)