The Union Cabinet on Wednesday approved minimum support prices (MSP) on 14 Kharif (summer) crops, following recommendations from the Commission for Agricultural Costs and Prices (CACP).
Union Cabinet Approves MSP On 14 Kharif Crops, 1.5 Times The production Cost | Key Points
Minimum Support Price (MSP) is the minimum price at which the government purchases crops from farmers, to ensure a minimum return for their produce and provide a safety net for farmers in case of fluctuating market prices.
Announcing the decisions, Union Information and Broadcasting Minister Ashwini Vaishnaw said, "In the 2018 Budget, the government had taken a very clear policy decision that the MSP has to be at least 1.5 times the cost of the production. This principle was applied in the decision taken this time. Every crop will have at least 50 per cent more MSP compared to the cost this time."
Minimum Support Price (MSP) is the minimum price at which the government purchases crops from farmers, to ensure a minimum return for their produce and provide a safety net for farmers in case of fluctuating market prices.
He added, "With today's decision, the farmers will get around Rs 2 lakh crore as MSP. This is Rs 35,000 crore more than the previous season."
The highest absolute increase in MSP over the previous year has been recommended for oilseeds and pulses, the minister added.
This is the first cabinet decision taken in Prime Minister Narendra Modi’s third term in office, the minister said.
Minimum Support Prices (MSP) For Various Crops:
- Paddy:
- MSP increased by 5.35% (₹ 117) to ₹ 2,300 per quintal compared to ₹ 1,310 in 2013-14
- Cotton:
- MSP for normal variety: ₹ 7,121
- MSP for another variety: ₹ 7,521 (₹ 510 higher than previous MSP)
- Millets:
- Jowar: MSP set at ₹ 3,371
- Ragi: MSP set at ₹ 4,290
- Bajra: MSP set at ₹ 2,625
- Maize: MSP set at ₹ 2,225
- Pulses:
- Moong: MSP set at ₹ 8,682
- Tur: MSP set at ₹ 7,550 (₹ 550 higher than previous figure)
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- Urad: MSP set at ₹ 7,400
Other Cabinet Decisions Announced
- Offshore Wind Energy Projects: The Cabinet has approved 1 GW offshore wind energy projects in Gujarat and Tamil Nadu, with a total outlay of Rs 7,453 crore.
- Vadhavan Port Development: The Union Cabinet has approved the development of an all-weather greenfield deepdraft major port at Vadhavan in Maharashtra, to be built at a cost of Rs 76,200 crore. On completion, it will be one of the top 10 ports in the world.
- Varanasi Airport Expansion: The Cabinet has approved a Rs 2,869.65 crore proposal for the expansion of Lal Bahadur Shastri International Airport at Varanasi, which includes:
- Construction of new terminal building
- Extension of apron and runway
- Parallel taxi track and other allied works
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