The Modi government has decided to increase the minimum support price (MSP) of rabi crops. Under this, Agriculture Minister Narendra Singh Tomar told in Lok Sabha that today the minimum support price of wheat has been increased by Rs 50 per quintal.
new Delhi. Following the recommendations of the Commission for Agricultural Costs and Prices, the Modi government has decided to increase the minimum support price (MSP) of rabi crops. Let me tell you that this morning the Prime Minister had made it clear that the MSP is going to run as before. With a target of doubling farmers’ income by 2022, the Modi government has enacted a new law to provide an alternative channel for the sale of farm produce, apart from mandis operated under the Agricultural Produce Marketing Committee (APMC) Act of the states.
Wheat MSP raised by Rs 50 to Rs 1,975
The government has raised the minimum support price (MSP) of wheat by Rs 50 per quintal to Rs 1,975. Agriculture Minister Narendra Singh Tomar told in the Lok Sabha that a decision has been taken in the meeting of the Cabinet Committee on Economic Affairs (CCEA) chaired by Prime Minister Narendra Modi. The system of MSP Agricultural Products Market Committee (APMC) will remain and government procurement will continue. Also, farmers will be able to sell their produce wherever they want.
Farmers protesting against MSP in new law
The Agriculture Minister made this announcement at a time when farmers are protesting in Punjab, Haryana and some other places of the country against the two agricultural bills passed in Parliament. Tomar said that the CCEA has approved an increase in the MSP of six rabi crops. Under the new law, such foods as natural or processed form, including wheat, rice or other coarse grains, pulses, oilseeds, edible oils, vegetables, fruits, nuts, spices, sugarcane and poultry, pigs, goats, fish and dairy products. In which human consumes, they are said to be agricultural products.
Why Support Price?
The Central Government announces the Minimum Support Price before the sowing season for some crops on the recommendation of the CACP-Commission for Agricultural Costs and Prices. This ensures the farmers that the government will give them a fixed price even if the prices of their crops fall in the market. Through this, the government tries to reduce their losses.
Why MSP is important?
However, not all governments give benefits to farmers. The worst is presently in Bihar and Madhya Pradesh, where farmers are not getting MSP. Anyway, the Shanta Kumar committee had said in its report that only 6 percent farmers get the benefit of MSP. That is, 94 percent farmers are dependent on the market.
The basis of deciding the MSP is the
Agricultural Costs and Prices Commission recommends the minimum support price. The price is fixed keeping some things in mind.
– What is the cost of the product.
– How much has changed in the prices of the things that are used in the crop.
– Current price trend in the market.
– Situation of demand and supply.
-How are the situation at national and international level.