Centre increases MSP for Rabi crops
Hyderabad, Nov 5 (INN): The Cabinet Committee on Economic Affairs, chaired by Prime Minister Narendra Modi, has given its approval for the Minimum Support Prices (MSPs) for Rabi Crops of 2015-16 Season to be Marketed in 2016-17.
The decision is based on recommendations of Commission for Agricultural Costs and Prices (CACP) for the Price Policy for Rabi Crops for the Marketing Season 2016-17. The CACP, which is an expert body, takes into account the cost of production, overall demand-supply, domestic and international prices, inter-crop price parity, terms of trade between agricultural and non-agricultural sectors, the likely effect of the Price Policy on the rest of economy, besides ensuring rational utilization of production resources like land and water, while recommending MSPs.
The CACP being the expert body, its recommendations are generally accepted as such. However, in view of the gap in the demand and domestic supply of pulses, the Cabinet has decided to give a bonus of Rs.75/- per quintal for Rabi pulses over and above the recommendations of the CACP. This is expected to give a strong price signal to farmers to increase acreage and invest for increase in productivity of pulses.
The Minimum Support Prices (MSPs) for all Rabi Crops of 2015-16 season to be marketed in 2016-17 have been increased. The MSP of wheat has been increased from Rs. 1450 to Rs. 1525 per quintal; for Barley from Rs. 1150 to Rs. 1225; from Rs. 3175 to Rs. 3425 for Gram; from Rs. 3075 to Rs. 3325 for Masur (Lentil); from Rs. 3100 to Rs. 3350 for Rapeseed/Mustard and for Safflower the MSP has been increased from Rs. 3050 in 2014-15 season to Rs. 3300 this year. The Centre has also announced a bonus of Rs. 75 each per quital for Gram and Masur.
The prices would be effective from the Rabi marketing season 2016-17. The higher MSPs would increase investment and production through assured remunerative prices to farmers.
The Cabinet also directed that in order to strengthen the procurement mechanism for pulses and oilseeds, Food Corporation of India (FCI) will be the Central Nodal Agency for procurement of pulses and oilseeds. To supplement the efforts of FCI, the National Agricultural Cooperative Marketing Federation of India Limited (NAFED), National Cooperative Consumers' Federation (NCCF), Central Warehousing Corporation (CWC) and Small Farmers Agri ' Business Consortium (SFAC) may also undertake procurement of oilseeds and pulses as per their capacity.
In a press release, the Centre has claimed that besides increase in Minimum Support Prices (MSP) of Rabi crops, it took several other farmer friendly initiatives over the last one year which include bonus of Rs 200 per quintal over and above the MSPs of Kharif pulses for 2015-16 season.
News Posted: 5 November, 2015
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