InvestorQ : How effective you think the hike in MSP for farmers will be?
Deepa Salunkhe made post

How effective you think the hike in MSP for farmers will be?

Arya Nanda answered.
3 years ago

The Cabinet Committee of Economic Affairs or CCEA of the Government of India has officially approved hiking of the minimum support price or MSP for Rabi crops like wheat, rapeseed, mustard, barley and chana.

This announcement comes in the immediate aftermath of the controversial passage of the two Farm Bills. To allay the concerns of farmers after widespread protests erupted across India over the Farm Bill, the MSP hike has been undertaken with immediate effect.

Many analysts had interpreted that the removal of the APMC as an intermediary would be tantamount to removal of the MSP. However, Prime Minister Modi has himself guaranteed that the MSP would be protected and this move was to underline that promise.

MSP of wheat has been hiked by Rs.50 per quintal while the MSP of gram was hiked by 8.3%. In addition, the MSP of rapeseed and mustard have been hiked by 7% while the MSP hike in Barley was 5.7%. This comes in the midst of a tough year in terms of resources.

The government underscored that Rs.1,13,000 crore had been disbursed as MSP benefits to farmers for Rabi crops; 30% higher compared to the previous crop year. This is part of the larger plan of the government to double farm incomes by the year 2022.