CCEA led by PM Modi increases Rabi crop MSP 2019-20, Raised minimum support price of wheat, barley, gram, lentils, rapeseed, mustard, safflower for Rabi marketing season 2020-21
PM Narendra Modi has increased the Minimum Support Price (MSP) of all compulsory rabi crops led by the Cabinet Committee on Economic Affairs (CCEA). Now Rabi Crops MSP 2019-20 has been increased by 1.5 times the average cost of production (CoP) in all India along with fixing of MSP. All wheat farmers will get more than double the average cost of production.
Rabi crops are grown in winter and harvested in spring. Accordingly, Rabi MSP will be applicable for marketing in the Rabi Marketing Season (RMS) 2020-21 for 2019-20 crops. This new policy of the MSP will assure a minimum profit margin of 50%.
The increase in Rabi crop MSP 2019-20 is a major step towards doubling farmer’s income by 2023 and improving their welfare.
Rabi crops MSP 2019-20 by Cabinet Committee
For the marketing of rabi crops in the Rabi Marketing Season 2020-21, the highest increase in MSP is recommended, which is pulses (Rs 325 per quintal). This rabi crop is safflower (Rs 270 per quintal) and gram (Rs 255 per quintal) to increase farmers’ income after the growth of MSP 2019-20. Rapeseed and mustard MSP has Rs. 225 per quintal.
For wheat and barley, the MSP has been increased from Rs. 85 per quintal and wheat farmers will get a cost benefit of 109%. Production cost is a major factor in determining the minimum support price (MSP). This year increase in rabi crop MSP for RMS 2020-21 will provide 50% higher return on India’s weighted average COP excluding safflower. The Return on All India Weighted Average COP is 109% for wheat, 66% for barley, 74% for gram, 76% for lentils, 90% for rapeseed and mustard and 50% for safflower.
The Food Corporation of India (FCI) and other state agencies will continue to provide price support to farmers in terms of grain. The concerned state government is going to purchase coarse grains with approval from the central government. In addition, the state government. Even the entire purchase under NFSA will deliver the quantity purchased. Government. The NFSA will provide subsidy for released quantities.
NAFED, SFAC and other central government agencies will continue to procure pulses and oilseeds. As per the guidelines, losses to nodal agencies can be fully reimbursed by the central government.
PM Kisan Samman Nidhi Yojana (PM-KISAN)
To ensure income security of farmers, the central government. Has shifted from a production-focused approach to an income-focused one. For this purpose, the Union Government. Coverage of PM Kisan Samman Nidhi Yojana (PM-KISAN) has been increased for all farmers. This decision was taken in the meeting of 1 Union Cabinet held on 31 May 2019 to boost the income of the farmer.
The PM-KISAN Samjhauta Nidhi Yojana was announced in the Interim Budget 2019-2020. In this scheme, all small and marginal landholding farmer families holding cultivable land of up to 2 hectares will get Rs. 6000 per year in 3 equal installments.
PM Annadata Aa Sankaran Abhiyan (PM-AASHA)
Pradhan Mantri Annadata Income Institute (PM-AASHA) Chhatra Yojana was announced by the Central Government in FY 2018. The scheme aims to provide remuneration to farmers for their produced crops. The PM-AASHA scheme consists of 3 sub-plans – Price Support Scheme (PSS), Price Reduction Payment Scheme (PDPS) and Private Procurement and Stockist Scheme (PPSS) on a pilot basis.
Source / Reference Link: https://www.business-standard.com/article/news-cm/cabinet-decides-to-hike-msp-for-rabi-crops-119102301119_1.html