In a landmark decision, the Union Cabinet has approved the minimum support price (MSP) for 14 key crops, ensuring a price that is at least 1.5 times the cost of production. This move is aimed at providing substantial financial relief to farmers as the Kharif (summer) sowing season begins. The MSP for paddy has seen a notable increase of ₹117, announced Information and Broadcasting Minister Ashwini Vaishnaw during a Cabinet briefing.
Significance of the MSP Approval
The decision to revise the MSP comes at a crucial time, ahead of the Assembly polls in states like Haryana, Maharashtra, and Jharkhand. Farmers have been demanding a legal guarantee for MSP, and this decision addresses those demands, which have led to large-scale protests in the past.
Prime Minister Narendra Modi has consistently emphasized the welfare of farmers. Minister Vaishnaw highlighted that the first decision of the third term of the current government was dedicated to farmers. The latest Cabinet meeting also prioritized farmer welfare by approving the MSP for 14 crops for the Kharif season.
Breakdown of MSP Increases
Paddy and Cotton
The MSP for paddy has been increased by 5.35%, or ₹117, setting the new price at ₹2,300 per quintal. This is a significant rise from the ₹1,310 per quintal in 2013-14. For cotton, the MSP for the normal variety has been set at ₹7,121, and for a higher variety, it is ₹7,521, reflecting a ₹510 increase from the previous MSP.
Millets and Pulses
Millets have gained special attention, with MSPs set as follows:
- Jowar: ₹3,371 per quintal
- Ragi: ₹4,290 per quintal
- Bajra: ₹2,625 per quintal
- Maize: ₹2,225 per quintal
Among pulses, the MSP for moong is now ₹8,682, tur at ₹7,550 (a ₹550 increase), and urad at ₹7,400.
Oilseeds
Oilseeds have also seen a hike, with significant increases in the MSP for sunflower and groundnut, ensuring better returns for farmers cultivating these crops.
Ensuring Fair Pricing
The decision aligns with the 2018 Union Budget policy, which mandated that the MSP should be at least 1.5 times the cost of production. This pricing strategy has been scientifically established through a study by the Commission for Agricultural Costs and Prices, conducted across various districts and tehsils nationwide.
Additional Support for Farmers
In addition to the MSP increase, the Prime Minister has released ₹20,000 crore as part of the 17th installment of the Kisan Samman Nidhi. This income support scheme provides farmers with up to ₹6,000 per year, further bolstering their financial stability.
Impact on Farmers and the Agricultural Sector
The approval of the revised MSP is expected to have a substantial positive impact on farmers’ income and the overall agricultural sector. By ensuring that farmers receive fair compensation for their produce, the government aims to reduce financial distress and promote sustainable farming practices. This move also encourages farmers to invest in better farming techniques and resources, ultimately leading to increased productivity and improved crop quality.
Conclusion
The Union Cabinet’s decision to approve the MSP for 14 crops, ensuring a price that is 1.5 times the cost of production, marks a significant step towards supporting and empowering farmers. With notable increases in the MSP for paddy, cotton, millets, pulses, and oilseeds, this move addresses the long-standing demands of the farming community and aligns with the government’s commitment to their welfare. As the Kharif season begins, farmers can look forward to better financial returns and a more secure future.