Centre announces increase in MSPs for six Rabi Crops

The Central Government announced the increase in the Minimum Support Price (MSP) of all mandated Rabi Crops. The decision regarding this was taken during the cabinet committee meeting on Economic Affairs held on September 21, 2020, under PM Modi’s chairmanship.

In his statement in Lok Sabha, the Agricultural Minister Narendra Singh Tomar informed that the MSP of 6 Rabi crops, including chana, masoor, wheat, Jowar, Mustard, and Safflower has been hiked in the range of Rs. 50 to Rs. 300.

The Union Minister clarified that the recently passed farm bills in the Parliament do not impact the provisions of the APMC Act or MSP in any way and the farmers must not fall prey to the misleading or false political tactics of the opposition parties.

It is our great privilege to work for the welfare of our farmers. In line with our ethos of taking farmer-friendly measures, the Cabinet has taken another historic decision to raise MSP. Crores of farmers will benefit from this. https://t.co/qn0r5USZC7

— Narendra Modi (@narendramodi) September 21, 2020

गेहूँ का समर्थन मूल्य 50 रूपए बढ़ाकर 1975 रूपए,

जौ का 75 रू बढ़ाकर 1600 रू,

चने का 225 रू बढ़ाकर 5100 रू,

मसूर का 300 रू बढ़ाकर 5100 रू,

सरसों का 225 रू बढ़ाकर 4650 रू,

कुसुम का 112 रू बढ़ाकर 5327 रू/ क्विण्टल कर दिया गया है| pic.twitter.com/XQbgCjbYgU

— Jagat Prakash Nadda (@JPNadda) September 21, 2020

Increase in MSPs of 6 Rabi Crops:

• The Minimum Support Price (MSP) of wheat has been increased by Rs. 50 and it now stands at Rs. 1,975 per quintal.

• The MSP for Masoor has been fixed at Rs. 5,100 per quintal after an increase of Rs. 300s.

• MSP for Chana has been increased by Rs. 225 per quintal to Rs. 5,100.

• MSP of mustard has been increased by Rs. 200 to Rs. 4,050 per quintal.

• The increase in Jowar’s MSP is by Rs. 75 to Rs. 1,600 per quintal.

• After an increase of Rs. 112, the MSP of Safflower is Rs. 5327 per quintal.

Key Highlights:

• The Union Minister informed that the government has paid nearly Rs. 7 lakh to the farmers as a part of MSP payment in the last 6 years. It is almost double the amount which was paid from 2009 to 2014 under the UPA government.

• The hike in MSP which is in consonance with the recommendations of the Swaminathan Commission’s report reflects the current government’s commitment towards the MSP and procurement of agricultural products in the country.

• As per the Agricultural Minister, the Food Corporation of India (FCI) and other designated state agencies will continue to provide price support to the farmers.

• The government has set up a buffer stock of pulses and domestic procurement of pulses is also being done under the Price Stabilization Fund.

Procurement of Agricultural products amid COVID-19:

The Agricultural Ministry informed that despite the COVID-19 pandemic and the nationwide lockdown, the government’s timely intervention has led to an all-time record procurement of wheat in the country. Under the procurement operations, around 43 lakh farmers have been benefitted in 2020.

The government also increased the procurement centres for the wheat by 1.5 times and for oilseeds and pulses by three times during the pandemic. The ministry also informed that 15% more procurement of wheat has been done during these times along with the disbursal of nearly Rs. 75,000 crores to the farmers.

Opposition to the farm bills: Background

The Rajya Sabha had passed the Farmers (Empowerment and Protection) Agreement of Price Assurance and Farm Services Bill, 2020, and Farmer’s Produce Trade and Commerce (Promotion and Facilitation) Bill, 2020 amid the protest from the opposition in Rajya Sabha. The protests are taking place, as the opposition parties have been alleging that the Minimum Support Price (MSP) will be impacted due to the passed bills.