For the upcoming rabi season, the center has increased MSP on wheat to Rs 2015 per quintal, with a 2 % hike from Rs. 1,975 per quintal as compared to the previous rate of last year.
The other products such as oilseeds and pulses like masoor dal, mustard, sunflower, etc also increased with the higher MSP of upto 8%. This will encourage crop diversification as stated by the Cabinet Committee on Economica Affairs.
The government purchases crops from farmers are the rates decide by MSP.
At present the government fixed the rates for 23 crops, for the upcoming rabi or winter season for which sowing will begin on winters that are from October will be the rates decide under MSP.
The government has taken a keen interest in farmers by increasing the MSPs of rabi crops. MSPs prices will encourage the farmers for sowing operations due to the remunerative prices on the products.
Agriculture Minister, Narendra Singh Tomar stated that,
“Some people who are spreading the illusion that MSP will be abolished should also learn from this decision. After the passage of the new agricultural reform laws, not only have the rates of MSP increased but there has also been a continuous increase in the procurement by the government.”
The MSPs of all rabi and Kharif crops are fixed by the government at least 1.5 times which is more than their production cost and this helped in enhancing the farmers’ income.
Profit should be estimated higher for the farmers while increasing the MSP on encouraging oilseed like Sarson and masoor also the labor costs and water are lower for these crops.