The underlying message in the MSP hike is to encourage farmers to opt for crop diversification and promote production of oilseeds. The initial announcement is also being seen as an attempt to send a positive signal to the agricultural unions in Punjab. Haryana and western UP agitated over agricultural laws, which he interpreted as the intention of eventually ending the MSP regime.
The increase for wheat, though smaller, takes the MSP to Rs 2,015 per quintal and reflects the overall higher support received under the procurement mechanism for cereals along with rice. Though all the six rabi crops have increased MSP over the previous year, analysis of the increase in cost of production, shows an absolute negative return in the case of wheat and barley.
The cost of production of both wheat and barley has increased by an estimated Rs 48 per quintal over the previous year, but the MSP for the 2022-23 rabi marketing season has increased by Rs 40 per quintal and Rs 35 per quintal respectively. At the same time, the return over cost of production will be 100% for wheat and 60% for barley.
The highest growth of mustard and rapeseed, on the other hand, is in line with the government’s increased focus on oilseeds to reduce the country’s dependence on imports. Similarly, a decent increase in the MSP of masoor (lentil) also reflects the preference over pulses, the increase in the price of which always causes resentment among consumers.
The announcement of MSP gives an indication to the farmers ahead of the sowing season so that they can make the right choice of crops and opt for diversification in advance. High investment in mandis as well as higher MSP and procurement by the government has also been cited as evidence of the Centre’s commitment to both.
The agriculture minister said, “All those who are spreading misinformation should take a message from the announcement. The rate of MSP and the purchase of crops at support price are increasing continuously after the implementation of agricultural laws.” Narendra Singh Tomar said.
He also flagged off Prime Minister Narendra Modi’s assurance on the issue and said that the MSP is high and will continue. Tomar said, “There should be no doubt in one’s mind about the fate of MSP.
Past records show that the Center never announced MSP for rabi crops in the first half of September, when the sowing of kharif (summer sown) crops is also in progress in some areas.
Except last year, when it was announced a day after the passage of controversial agriculture bills Parliament September 21 is announced either in October or later in November or December. Once on 29 January 2009, during the UPA-I, almost the end of the Rabi sowing season was announced.
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