Ahead of sowing, Kharif MSP revealed

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Last Updated10/06/2022

The Union Cabinet raised the minimum support price (MSP) for paddy by ₹100 a quintal for the Kharif season of 2022-23.
For Other kharif crops:
- The rates for 14 crops have been increased in the range of 4% to 8%.
- This is similar to the increase in MSP in 2021-22, which was in the range of 1% to 7%.

Indian agriculture had scaled new heights in the past eight years because of the beej se bazar tak (seed to market) vision.
The new rates had been announced before the beginning of the sowing season, for assured returns to the farmers and to boost their morale.
Paddy is the main Kharif crop, the sowing of which has already begun.

The present increase comes against the backdrop of spiraling input rates, especially due to a sharp increase in fertilizer rates.
The fertilizer subsidy bill had also simultaneously increased.
- Doubled subsidy to unburden farmers in spite of the global increase in prices of fertilizers, this year, we are giving a subsidy worth ₹2.1 lakh crore.
The government is struggling to procure crops in the wake of a high demand because of global supply disruption.

The announcement did not generate positive sentiment among the farm unions.
All-India Kisan Sabha leader said that such incremental increase in prices would not make a difference.
Fertilizer costs are very high.
The fundamental problem still remained, that the MSP was not a statutory compulsion.
Only procures four crops and that too from select States.
Minimum bidding for the crop should begin from the MSP onwards.
Farmers are selling crops in the open market since they are getting better rates.
The increase for paddy, for example, from 2005-06 to 2013-14 was 130%, while the increase from 2014-15 to 2022-23, is 50%.