Centre hikes MSP of wheat by Rs 40, mustard by Rs 400

Vibha Sharma

Tribune News Service

New Delhi, September 8

The Centre on Wednesday hiked the minimum support price of wheat by Rs 40 per quintal and mustard (oil seed) and masur (lentil) by Rs 400 per quintal “to boost crop area, income of farmers as well as encourage diversification” for the crop year 2022-23.

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The MSP of wheat, a key Rabi crop, has been increased by around 2 per cent (Rs 40) to take it to Rs 2,015 per quintal from Rs 1,975 in the 2020-21 crop year. The support price of mustard and rapeseed is up by around 8.6 percent (Rs 400) from Rs 4,650 per quintal last year to Rs 5,050 for 2022-23 and masur from Rs 5,100 to Rs 5,500 per quintal (7.8 per cent).

According to officials, the cost of production of wheat is estimated at Rs 1,008 per quintal, of masur Rs 3,079 and mustard Rs 2,523. Therefore, in terms of return, wheat, rapeseed and mustard have got a “100 per cent increase” and masur “79 per cent” rise.

“The differential remuneration is aimed at encouraging crop diversification,” officials said.

“Expected returns to farmers over their cost of production are estimated to be highest in case of wheat and rapeseed and mustard (100% each), followed by lentil (79%), gram (74%), barley (60%) and safflower (50%),” they added.

Wheat and mustard are the two major Rabi crops.

The MSP of gram has been increased by Rs 130 to take it to Rs 5,230 per quintal in the upcoming season, barley by Rs 35 to take it to Rs 1,635 per quintal and safflower by Rs 114 to take it to Rs 5,441 per quintal. 

“Concerted efforts have made over the last few years to realign MSPs in favour of oilseeds, pulses and coarse cereals to encourage farmers shift to larger area under these crops and adopt best technologies and farm practices, to correct demand-supply imbalance,” they said.

The production cost refers to comprehensive cost which includes all paid out costs such as those incurred on account of hired human labour, bullock labour/machine labour, rent paid for leased in land, expenses incurred on use of material inputs like seeds, fertilisers, manures, irrigation charges, depreciation on implements and farm buildings, interest on working capital, diesel/electricity for operation of pump sets etc., miscellaneous expenses and imputed value of family labour, according to the official definition.

The decision was taken at a meeting of the Cabinet Committee on Economic Affairs (CCEA) chaired by Prime Minister Narendra Modi.

MSP is the rate at which the government buys the grain from farmers.

Currently, the government fixes MSPs for 23 crops grown in both Kharif and Rabi

The sowing of Rabi (winter crops) begins from October  after the harvest of Kharif (summer crops).