Last Updated on 2 years by INDIAN AWAAZ
Lowest increase in MSP for bajra, direct impact on WPI inflation pegged at 0.2% if all crops receive higher prices increase
By Aditya Raj Das / NEW DELHI
The Cabinet Committee on Economic Affairs, CCEA today approved increase in Minimum Support Price for all intended Kharif crops for Marketing Season 2022-23.
Briefing media in New Delhi, Information and Broadcasting Minister Anurag Singh Thakur said, the approved rates are at least 1.5 times of the all India weighted average cost of production. He said, the highest absolute increase in MSP over previous year has been recommended for Sesamum 523 rupees per quintal, Moong 480 rupees per quintal, Sunflower seed 385 rupees per quintal, Tur, Urad and Groundnut 300 rupees per quintal, Cotton (Medium Staple) 354 rupees and Cotton (Long Staple) 355 rupees.
The Minister said, it will lead to greater investment and production. It will also provide assured remunerative prices for the farmers and will help in achieve the goal of Aatmanirbhar Bharat. He said, it will lead to self-sufficiency and reduce dependency on imports.
Prime Minister Narendra Modi has said, today the government has taken an important decision in the interest of its farmers who are dedicated to the service of the country. In a tweet, Mr Modi said, Minimum Support Price for Kharif crops has been increased and this decision of the Cabinet will empower crores of farmers of the country.
The MSP for soybeans and sunflower seeds has been raised by 8.86 per cent and 6.40 per cent respectively. The lowest increase has been for bajra.
“The average price hike would be around 5.8 per cent for these commodities. Given a weight of 3.4 per cent in the overall index, the direct impact on WPI inflation can be around 0.20 per cent if all crops receive the higher price,” Madan Sabnavis, Chief Economist at Bank of Baroda said.
Edible oil prices have been on the boil since the last several months, which has further aggravated after the Russia-Ukraine crisis. The current market price of both soybeans and groundnut is ruling much above the revised MSP of 2022-23 season.
Soybeans are selling at around Rs 6400-7000 per quintal in the open markets and groundnut is being quoted at around Rs 5700-6600 per quintal. This is much above their new MSPs of Rs 4300 and Rs 5850 per quintal respectively.
In case of paddy, whose MSP has for the first time crossed Rs 2000 per quintal, analysts believe it could spur sowing in Punjab, Haryana and UP.