Cabinet approves increase in Minimum Support Prices for Rabi Crops

The expected returns to farmers over their cost of production are estimated to be highest in case of wheat (106 per cent). Since 2013-14, the MSP for wheat has increased at a CAGR of 5 per cent. For the marketing season 2021-22, it is 2.6 per cent higher than the previous year.

An increase of Rs 75 per quintal has been announced for barley, which is 4.9 per cent higher than last year. Return to farmers over their cost of production is estimated at 65 per cent for the crop. The increase in MSP for barley has been between around 6 per cent per annum during 2013-14 to 2020-21.

For gram, return to farmers over their cost of production is estimated at 78 per cent. The per annum growth in the MSP of Gram (Chana) has been 7.4 per cent.

The highest increase in MSP has been announced for lentil (Rs 300 per quintal) - an increase by 6.3 per cent YoY. Return over cost is estimated at 78 per cent.

The increase in MSP for Rapeseed and Mustard has been around 6 per cent per annum during 2013-14 to 2020-21. The cost of production is Rs 225 per quintal and return over cost is estimated at 93 per cent.

The increase in MSP for Safflower is 2.1 per cent compared to the previous year. Return to farmers is estimated at 50 per cent. The per annum growth in the MSP of safflower has been more than 8 per cent during the last 8 years.