Doubling Farmers’ Incomes: Rs 62,635 Crore Bonanza For Farmers As Government Hikes MSP For Rabi Crops

The Centre today (3 October) increased the minimum support price (MSP) for wheat by Rs 105 a quintal to Rs 1,840 for the Rabi marketing season starting 1 April, 2019. Wheat is a Rabi crop that is sown during the November-December period and harvested in April.

The hike in the MSP was cleared by the Cabinet Committee of Economic Affairs with a statement saying that the total increase in the support prices for Rabi crops would help farmers get additional returns to the tune of Rs 62,635 crore. The cost of wheat production has been worked at Rs 866 per quintal and the Rs 1,840 MSP means, a more than double return for the farmers growing the grain.

The hike is in tune with the government policy announced in the Budget that it would ensure that farmers would get at least 50 per cent return on their production costs. In June this year, the Narendra Modi government announced MSP for the Kharif crops ensuring that the policy was implemented in right earnest.

Among other Rabi crops, the MSP for gram (chana) has been fixed at Rs 4,620 a quintal, while for rapeseed/mustard (the major oilseed of the season), the support price is Rs 4,200 a quintal.

The announcement of MSP comes well in advance before Rabi sowing starts. This will help farmers to decide which crop to grow to ensure that they get better returns for the their toil on their farms.