The hikes in the MSP for wheat and mustard has witnessed a two fold increase in the returns on cost of production, according to Union Information and Broadcasting Minister, Anurag Thakur.
The Union Cabinet on Tuesday approved a hike in the Minimum Support Price for Rabi Crops, including wheat and mustard. The Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Narendra Modi, hiked the MSP for wheat by Rs 110 per quintal and MSP for mustard by Rs 400 per quintal, for the RMS (rabi marketing season), 2023-24. The government increased the MSP for lentils by Rs 500, the highest among all crops. The hikes in the MSP for wheat and mustard has witnessed a two fold increase in the returns on cost of production, according to Union Information and Broadcasting Minister, Anurag Thakur.
The cost of production is estimated after factoring in all the costs incurred by the farmers, including labour, seeds, fertilisers, working capital, among other things. The government, in the union budget 2019-19, announced that the MSP, the price at which the government procures crops from farmers, will be aligned at a level of at least 1.5 times the pan-India weighted average cost of production, in order to fairly remunerate the farmers.
The MSP for wheat was increased from Rs 2015 per quintal in 2022-23 to Rs 2125 per quintal for 2023-24. The average cost of production for the upcoming RMS is estimated at Rs 1065 per quintal, thus reflecting a return of 100 per cent on cost of production. Similarly, the MSP for mustard was increased from the previous Rs 5050 per quintal to Rs 5450 per quintal for 2023-24. Government estimated the average cost of production for RMS 2023-24 at Rs 2670, hence registering a return of 101 per cent.
The MSP for Barley and Gram were increased by Rs 100 per quintal and Rs 105 per quintal to Rs 1735 per quintal and Rs 5335 per quintal, respectively, for 2023-24. Lentils saw the highest increase in MSP. For RMS 2022-23, the MSP for lentils was at Rs 5500 per quintal, which has now increased to Rs 6,000 per quintal, registering a Rs 500 bump. The MSP for Safflower increased by Rs 209 per quintal and is now at Rs 5650 per quintal.