The Narendra Modi-led BJP government on Wednesday, October 23, increased the Minimum Support Price (MSP) for Rabi crops, that is, wheat, barley, safflower, gram, lentil and mustard from 50 percent to 109 percent for marketing season 2020-21.
The decision was taken at the meeting of the Cabinet Committee on Economic Affairs (CCEA), headed by Prime Minister Narendra Modi in a bid to increase farmers' income. The CCEA has approved MSPs of all rabi (winter-sown) crops for the 2019-20 crop year (July-June) as recommended by the government's farm price advisory body CACP, the sources added.
MSP is the rate at which the government buys grains from farmers. The CCEA has approved Rs 85 per quintal hike in wheat MSP to Rs 1,925 per quintal for the 2019-20 rabi crop, up from Rs 1,840 per quintal last year.
Barley MSP has also been increased by Rs 85 to Rs 1,525 per quintal for the current year from Rs 1,440 per quintal last year.
To encourage the cultivation of pulses, the support price of masoor has been increased by Rs 325 to Rs 4,800 per quintal for this year from Rs 4,475 per quintal last year.
Similarly, the MSP of gram has been hiked by Rs 255 to Rs 4,875 per quintal for this year from Rs 4,620 per quintal last year.
Among oilseeds, rapeseed/mustard MSP has been increased by Rs 225 to Rs 4,425 per quintal for 2019-20 rabi crop from Rs 4,200 per quintal during 2018-19.
The minimum support price of safflower has been hiked by Rs 270 to Rs 5,215 per quintal for the current year from Rs 4,945 per quintal last year.
Wheat is the main rabi crop, sowing of which will begin next month. The crop will be marketed from next April onwards.
(With agency inputs)