Minimum Support Prices (MSP) for Kharif Crops for marketing season 2020-21 [Can be asked in IBPS AFO, NABARD, JRF, SRF]

Minimum Support Prices (MSP) for Kharif Crops for marketing season 2020-21 (Agri Current Affair )

  • The Cabinet Committee on Economic Affairs (CCEA) chaired by the Hon'ble Prime Minister Shri Narendra Modi has approved the increase in the Minimum Support Prices (MSPs) for all mandated Kharif crops for marketing season 2020-21. MSP of Kharif crops for marketing season (2020-21) increased by Government: To ensure remunerative prices to the growers for their produce. The highest increase in MSP is proposed for nigerseed (Rs 755 per quintal) followed by sesamum (Rs 370 per quintal), urad (Rs 300 per quintal) and cotton (long staple) (Rs 275 per quintal).The differential remuneration is aimed at encouraging crop diversification.The increase in MSP for Kharif Crops for marketing season 2020-21 is in line with the Union Budget 2018-19 announcement of fixing the MSPs at a level of at least 1.5 times of the All-India weighted average Cost of Production (CoP), aiming at reasonably fair remuneration for the farmers. 

  • The expected returns to farmers over their cost of production are estimated to be highest in case of Bajra (83%) followed by urad (64%), tur (58%) and maize (53%).For rest of the crops, return to farmers over their cost of production is estimated to be at least 50%.
Government’s strategy focus on nutri-rich nutri-cereals 
    • First strategy: 
      • To promoting sustainable agriculture with diversified cropping pattern matching with the country's agro-climatic conditions, towards higher productivity without jeopardizing nation's bio-diversity. to support is in the form of MSP as well as procurement. Besides, with the intention of giving enough policy thrust to income security of the farmers. 
    • Government's production-
      • centric approach has been replaced by income-centric approach.
  • Concerted efforts were made over the last few years to realign the MSPs in favour of oilseeds, pulses and coarse cereals 
    • To encourage farmers shift to larger area under these crops and 
    • Adopt best technologies and farm practices, to correct demand - supply imbalance. 
  • Added focus on nutri-rich nutri-cereals 
    • It is to incentivize its production in the areas where rice-wheat cannot be grown without long term adverse implications for groundwater table.
  • Government is taking holistic approach towards supporting the farmers and facilitate farming related activities in the lockdown situation due to Covid 19. 
  • Efforts are being made to facilitate marketing of agricultural produce by the farmers. 
  • Advisories have been issued by the Union Government to State Governments / UT to facilitate Direct Marketing, enabling direct purchase from the farmers / FPOs / Cooperatives etc. by Bulk Buyers /Big Retailers / Processors by limiting regulation under State APMC Act.