On Wednesday, the central government raised the Kharif Crop Minimum Support Price (MSP) for the 2022-23 crop year by 4-9% and the rice MSP by Rs 100 to Rs 2,040 per quintal, a move aimed at encouraging farmers to increase their acreage and increase their incomes.

The Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Narendra Modi, has approved an increase in MSP for all 14 Kharif (summer) crops for the 2022-23 crop year.

Describing it as an important decision, PM Modi tweeted that increasing the MSP for Kharif crops would empower hundreds of millions of farmers in the country.

Agriculture Minister Narendra Singh Tomar tweeted after the Cabinet decision: “The MSP for Kharif crops has been raised to Rs 92 to Rs 523 per quintal, which will help farmers reduce production costs. From recovery to recover 50-85% of profits.”

The maximum price increase for sesame is Rs 523 per quintal, while the minimum price increase for corn is Rs 92 per quintal. In percentage terms, soybean MSPs have risen the most at 9%, while bajra’s support price has risen 4% this year.

“The government has raised the MSP for the 2022-23 Kharif crop to ensure that growers are affordable and to encourage crop diversification,” the official statement said.

Information and Broadcasting Minister Anurag Thakur said announcing the increase in MSP ahead of planting the Khalif crop would allow farmers to understand the price they would receive and help them decide which crops to plant.

According to the CCEA decision, for the 2022-23 crop year, the MSP for rice and bajra has been raised by Rs 100 per quintal, while the MSP for tur, urad and groundnut has been raised by Rs 300 per quintal.

The MSP for common rice varieties for the 2022-23 crop year has been raised to Rs 2,040 per quintal from Rs 1,940 per quintal the previous year.

The support price for ‘A’ grade rice varieties has been raised from Rs 1,960 per quintal to Rs 2,060 per quintal.
Thakur said the MSP for eight crops was 1.5 times the cost of production, while the remaining six crops were supported by prices between 51-85%.

He further stated that the increase in MSP for oilseeds and pulses over the past few years has helped reduce the country’s import dependence. Purchases of wheat, rice, some oilseeds and pulses also increased sharply.

Over the past few years, there has been a concerted effort to realign MSPs to support oilseeds, pulses and coarse grains to encourage farmers to expand the acreage of these crops and apply the best technology and agricultural practices to correct the supply-demand imbalance, he added.

All 14 crops have 46-131% higher MSPs in 2022-23 compared to 2014-15. For example, the MSP of rice (common variety) has increased by 50% to Rs 2,040 per quintal compared to Rs 1,360 per quintal in 2014-15.