The Cabinet Committee on Economic Affairs, chaired by Prime Minister Narendra Modi, on Wednesday approved an increase in minimum support prices (MSP) for 17 Kharif crops for the 2022-23 marketing season.

Share Market Live

NSE

"In today’s cabinet meeting, MSP of 14 Kharif crops was approved," Information and Broadcasting Minister Anurag Thakur told reporters in New Delhi.

Also Read:

Federation of Automobile Dealers Associations calls for an overhaul of dealership contracts, calls them lop-sided

The highest absolute increase in MSP over the previous year has been recommended for sesamum (Rs 523 per quintal), followed by moong (Rs 480 per quintal) and sunflower seed (Rs 385 per quintal).

Minimum Support Prices for all Kharif crops for Marketing Season 2022-23 (Rs per quintal)

The MSP of the common grade variety of paddy has been increased to Rs 2,040 per quintal for the 2022-23 crop year from Rs 1,940 in the previous year. The support price of ‘A’ grade variety of paddy has been hiked to Rs 2,060 per quintal from Rs 1,960.

The increase in MSP for Kharif crops for the 2022-23 marketing season was in line with the Union Budget 2018-19 announcement of fixing the MSP at a level of at least 50 percent over the all-India weighted average cost of production, aiming at a reasonably fair remuneration for the farmers.

Also Read: Govt garners Rs 471.5 crore via 19.55 percent stake sale in Paradeep Phosphates

Paddy is the main Kharif crop, the sowing of which has already begun. The meteorological department has projected a normal monsoon for the June-September period.

The minister also highlighted several programmes launched during the last eight years by the Modi government to boost farmers’ income and ensure comprehensive growth of the farm sector.

S K Ghosh, Group Chief Economic Advisor to SBI, said, "MSP hike for the Kharif crops, there will be an upside pressure of 15 to 20 bps on inflation."

Aditi Nayar, Chief Economist, ICRA, said the absolute increase in the MSP is higher for oilseeds and pulses that are grown in the Kharif season as compared to cereals, "I think that is an appropriate thing to do. As we look at what are the items that are causing inflation right now, certainly oilseeds is a big issue."

"The other item that is causing us trouble on the inflation front is wheat. But it's a Rabi crop so very less we can do. For pulses, we have had a traditional import dependence. So, it is much better to really signal a shift for the farmers in terms of providing a more remunerative MSP for both oilseeds and pulses. So if I understood the absolute increases correctly, then I think this is very much in line," he added.

First Published:Jun 8, 2022 5:04 PM IST