Union Cabinet approves increase in MSP for Rabi crops; highest-ever remunerative price

The Cabinet Committee on Economic Affairs (CCEA) has brought a hike to the Minimum Support Prices (MSP) for Rabi crops for the 2022-23 marketing season. This CCEA committee chaired by Prime Minister Narendra Modi had additionally approved the highest ever remunerative price for sugarcane at ₹290/quintal. These increased MSPs are aimed at encouraging crop diversification.

Notably, another sponsored scheme by the Centre - National Mission on Edible Oils-Oil Palm (NMEO-OP), will help in increasing the domestic production of edible oils and reduce import dependency. These changes were made under PM Modi's "Pradhan Mantri Annadata Aay SanraksHan Abhiyan' (PM-AASHA) scheme (2018). This umbrella scheme consists of three sub-schemes Price Support Scheme (PSS), Price Deficiency Payment Scheme (PDPS) and Private Procurement & Stockist Scheme (PPSS). 

Farmers to profit from Rabi MSP hike

The CCEA chaired by the PM Modi government has increased the MSP of Rabi crops for the year 2022-23 to ensure remunerative prices to the growers for their produce. The surge in MSP for Rabi crops is in line with the Union Budget 2018-19 announcement of fixing the MSPs at a level of at least 1.5 times the all-India weighted average cost of production. This scheme is aimed at a reasonably fair remuneration for the farmers, and the farmers are expected to benefit from their cost of production.

These are estimated to be highest in the case of wheat, rapeseed and mustard (100%), followed by lentil (79%) gram (74%), barley (60%) and safflower (50%). This implementation by the CCEA comes after concentrated efforts made over the past few years to realign the MSPs in favour of oilseeds, pulses and coarse cereals. The scheme is aimed at encouraging farmers to maximise production and adopt the best technologies and farm practices to further revamp the demand-supply balance. 

NMEP-OP to aid and welcome employment for farmers

NMEP-OP is a centrally sponsored scheme introduced by the government recently. This scheme will help in increasing the domestic production of edible oil and reduce imports dependency. The total budget announced for this scheme is estimated at around ₹11,040 crores. This will not only aid in expanding the area and productivity of the farming sector but also benefit the farmers by developing their income and will open up employment opportunities. 

Image Credits- ANI