Union Government increases MSP for Rabi Crop
The Union Government announced on Wednesday an increase in the Minimum Support Price (MSP) for Rabi Crops during the marketing season 2023-24. A government press release said that the increase in the MSP was to ensure a remunerative price to the growers for their produce.
The absolute highest increase in MSP has been approved for lentil (Masur) at Rs.500/- per quintal followed by rapeseed and mustard at Rs.400/- per quintal. For safflower, an increase of Rs.209/- per quintal has been approved. For wheat, gram and barley an increase of Rs.110/- per quintal, Rs 105 and Rs.100 per quintal respectively has been approved.
The MSP has been worked out by taking into consideration all paid out costs such as those incurred on account of hired human labour, bullock labour/machine labour, rent paid for leased in land, expenses incurred on use of material inputs like seeds, fertilisers, manures, irrigations charges, depreciation on implements and farm buildings, interest on working capital, diesel/electricity for operation of pump sets etc., misc. expenses and imputed value of family labour.
The increase in MSP for Rabi Crops for Marketing Season 2023-24 is in line with the Union Budget 2018-19 announcement of fixing the MSP at a level of at least 1.5 times of the All-India weighted average Cost of Production, aiming at reasonably fair remuneration for the farmers. The maximum rate of return is 104 per cent for rapeseed and mustard, followed by 100 percent for wheat, 85 per cent for lentil; 66 per cent for gram; 60 per cent for barley; and 50 per cent for safflower.
The press release added that the Government is also promoting adoption of smart farming methods through the use of technology and innovation in the agriculture sector in the country. Government is implementing a Digital Agriculture Mission (DAM), which includes India Digital Ecosystem of Agriculture (IDEA), Farmers Database, Unified Farmers Service Interface (UFSI), Funding to the States on the new Technology (NeGPA), Revamping Mahalnobis National Crop Forecast Centre (MNCFC), Soil health, Fertility and profile mapping. Under the NeGPA programme, funding is given to State Governments for Digital Agriculture projects using emerging technologies like Artificial Intelligence and Machine Learning (AI/ML), Internet of Things (IOT), Block chain etc. Adoption of drone technologies is being done. To promote smart farming, the Government also promotes Startups in the Agriculture sector and nurtures agri-entrepreneurs.