The Modi-led Central Government has raised the Minimum Support Price (MSP) for Kharif and Rabi crops of 2019-20 like Paddy, wheat, pulses, and oilseeds on the line of deciding the MSP at a level of 1.5 times the cost of production as stated in Union Budget 2018-19, a government release shared.
As a written reply, the information was released by Narendra Singh Tomar, Union Minister of Agriculture and Farmers Welfare, in Lok Sabha recently.
The MSPs of 22 important crops like wheat, pulses, and oilseeds as per the suggestions of the Commission for Agricultural Costs & Prices (CACP) have been decided by the government.
Besides, MSP for Toria and De-Husked coconut has also been decided on the basis of MSPs of Rapeseed & Mustard and Copra respectively, it was revealed.
While recommending MSP, CACP point outs many factors viz. cost of production, overall demand-supply situations of different crops in local and global markets, Indian and global prices, inter-crop price difference, terms of trade between agriculture and non-agricultural sector, likely effect of price policy on rest of economy, rational utilisation of land, water and other production resources and at least 50 percent as the margin over the cost of production, the release announced.
The views of the farmer and farmer’s association are also considered by CACP before recommending MSP, the release said.