Percent change in MSP over the years
The Union Cabinet on Wednesday raised the minimum support price (MSP) by RS 40 to RS 2,015 on wheat regarding per quintal for the current crop. MSP is the rate with which the government buys the grains from the farmers. As of now the Indian government has fixed MSPs for 23 kinds of different crops grown in both Rabi and Kharif seasons. India stands in the second position in terms of producing wheat, every year the government sets a price which helps to protect domestic farmers from the distress and even stocks grains for the emergency purpose. Other than that it servers the purpose to supply the grains for the poor at a very low cost. As the reports according to the previous year there was an absolute increase in MSP for the seeds such as rapeseeds, mustard and lentils at RS 400 per quintal and RS 130 per quintal for gram.
Sowing Rabi (winter) crops begins from October just after the immediate harvest of Kharif (summer) crops. Considering it wheat is a Rabi crop. As of 2020 the MSP on wheat was raised by RS 50 to RS 1,975 as of per quintal. In the terms of percentage the hike in the MSP of wheat is just over 2% from the previous year.
According to the reports the Centre’s cost for the production of wheat for the year 2022-23 is estimated at RS 1,008 per quintal. The record for the production of wheat during 2021-22 has a record of over 43 million tones according to a report produced by the government. The government even gave a statement that the increase in MSPs for the Rabi crops for 2022-23 for the marketing season is lined up with the Union Budget of 2018-19 which announced the fixing of the MSPs which aims at least 15 times average of the production cost which aims to refer a proper remuneration and earn for the farmers.
The returns of the farmers showed that the cost of the production of wheat and mustard (100%EACH) has led to a high remuneration following lentil (79%) and gram (74%), barley (60) and safflower (50) according to the reports. As of now it is seen that thousands of farmers have been protesting against the three farm bills passed by the government. Now it seen that the MSP hike in crops is not enough to cover the cost of the cultivation.