For the season 2022-23, Cabinet increases MSP for Kharif crops

Union Minister for Information & Broadcasting and Youth Affairs & Sports, Anurag Thakur said that the Union Cabinet has authorised an increase in the Minimum Support Price (MSP) for several Kharif (summer) crops for the year 2022-23. The MSP for Kharif crops for the crop year 2022-23 will now rise.

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KEY POINTS:

• Prime Minister Narendra Modi‘s Cabinet Committee on Economic Affairs (CCEA) has authorised a hike in MSP for all mandatory Kharif crops for the crop year 2022-23.
• The MSP of 14 kharif crops was decided in cabinet meeting, as told by Anurag Thakur.
• For the 2022-23 crop year, the MSP for common grade paddy has been increased to 2,040 per quintal, up from 1,940 the previous year.
• The support price for ‘A’ quality paddy has been increased from 1,960 to 2,060 per quintal.
• The main kharif crop is paddy, which has already begun to be sown. The meteorological authority predicts that the Southwest monsoon in 2022 will be normal, with a long-term average of 99 percent.
• In the last three years, normal to good monsoons have benefited kharif food grain production, which has increased by 2.8 percent on average, and this may result in kharif production increasing by 2.5 percent, on top of a 1.5 percent increase in rabi output.
• Several programmes undertaken by the Narendra Modi-led BJP administration over the previous eight years to enhance farmers’ income and promote holistic growth of the farm sector were also emphasised by the Information and Broadcasting Minister.

What is MSP?

In some parts of India, the minimum support price (MSP) is an advisory price signal that is part of a larger set of agricultural policies. The government recommends this informal support price in order to guarantee the farmer a minimal profit for the harvest while also enhancing food security in the country. In the 1960s, MSP was used as an incentive for farmers to adopt technology with the goal of enhancing agricultural land productivity; but, in the 2000s, it was viewed as a market intervention and farmer income plan. The effectiveness of a price regime like this has varied greatly between states and commodities. The percentage of farmers that are aware of the MSP is only 23%.

Important Takeaways For All Competitive Exams:

• Union Minister for Information & Broadcasting and Youth Affairs & Sports: Anurag Thakur
• Chairman of Cabinet Committee on Economic Affairs (CCEA): Prime Minister Narendra Modi

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