Recently, Cabinet Committee on Economic Affairs (CCEA) approved an increase in Minimum Support Price (MSP) for six rabi crops for 2023-24.
Minimum Support Price (MSP) is a form of market intervention by the Government of India to insure agricultural producers against any sharp fall in farm prices. The minimum support prices are announced by the Government of India at the beginning of the sowing season for certain crops on the basis of the recommendations of the Commission for Agricultural Costs and Prices (CACP).
MSP system was started in 1966-67 for wheat and was expanded further to include other essential food crops.
Significance: The Centre has increased the MSP of rabi crops to “ensure remunerative prices to the growers”.
The increase in MSP for rabi crops is in line with the Union Budget 2018-19 announcement of fixing the MSP at a level of at least 1.5 times of the All-India weighted average cost of production, aiming at reasonably fair remuneration for the farmers.
The maximum rate of return is 104 per cent for rapeseed & mustard, followed by 100 per cent for wheat, 85 per cent for lentil; 66 per cent for gram; 60 per cent for barley; and 50 per cent for safflower.
