Cabinet announced MSP for Kharif crops 2021-22

By Sudheer Kumar K|Updated : June 11th, 2021

The Cabinet Committee on Economic Affairs, chaired by Prime Minister Narendra Modi, approved an increase in the Minimum Support Prices (MSPs) for all mandated Kharif crops for the marketing season 2021-22. 

Government increased the Minimum Support Price (MSP) for Kharif Crops for the marketing season 2021-22 in consistent with the Union Budget 2018-19 announcement of fixing MSPs at at least 1.5 times the All-India weighted average Cost of Production (CoP), with the goal of providing farmers with reasonably fair remuneration.

  • MSP for Paddy was hiked to ₹1,940 a quintal for the coming kharif season, less than 4% higher than last year’s price of ₹1,868.
  • The highest absolute increase in MSP over the previous year was recommended for Sesamum (Rs. 452 per quintal) followed by Tur and Urad (Rs. 300 per quintal each).


Image credit: Indian Express

Promotion of Pulses & Oilseeds: MSP 

  • Over the last few years, concerted efforts have been made to realign MSPs in favour of oilseeds, pulses, and coarse cereals in order to encourage farmers to plant larger areas of these crops and to adopt best technologies and farm practices in order to correct the demand-supply imbalance.
  • The increased emphasis on nutri-rich nutri-cereals is intended to encourage their production in areas where rice-wheat cannot be grown without long term adverse implications for groundwater table.
  • Kharif Strategy for Pulses:
    • With an aim to attain self-sufficiency in the production of pulses (increase area under pulses and productivity enhancement for Tur, Moong, and Urad), Government has formulated a detailed plan.  
    • Under the strategy, Government will distribute high-yielding varieties (HYVs) of seeds free of cost to increase area under pulses through intercropping and sole crop.
  • Kharif Strategy for Oilseeds:
    • The Union Government approved an ambitious plan for the free distribution of high-yielding varieties of seeds to farmers in the form of mini-kits for the Kharif season 2021.
  • In 2018, The Union Government announced an Umbrella Scheme "Pradhan Mantri AnnadataAaySanraksHan Abhiyan (PM-AASHA)", which will aid in providing remunerative return to farmers for their produce. The Umbrella Scheme consists of three sub-schemes:
    • Price Support Scheme (PSS),
    • Price Deficiency Payment Scheme (PDPS) and
    • Private Procurement & Stockist Scheme (PPSS) on a pilot basis 

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