The government on Monday said that the minimum support price (MSP) approved for Rabi crops for the 2022-23 Rabi marketing season is higher or equal to 1.5 times of their cost of production.
According to a statement issued by the Ministry of Agriculture, the expected returns to farmers over their cost of production is to be highest in case of wheat as well as rapeseed and mustard, at 100 per cent each.
In case of lentils, gram, barley and safflower, the expected returns are 79 per cent, 74 per cent, 60 per cent and 50 per cent respectively.
Last week the the Cabinet Committee on Economic Affairs (CCEA) had approved the increase in the MSP for all designated Rabi crops for Rabi marketing season 2022-23, when in advance of the sowing season.
The decision taken by the government can be seen in the light of the ongoing farmers agitation over the three controversial farm laws, where apprehensions by growers that the issue of MSP getting compromised, is key.
The ministry's statement went on to add that MSP is an integral component of agriculture price policy and it is aimed at ensuring support price to farmers and affordable prices to the consumers as well.
Based on the recommendations of the Commission for Agricultural Costs and Prices (CACP), the government declares MSP, for which it also considers views of states and Central ministries.
The factors considered by CACP for fixing MSP include cost of production, domestic and international prices, demand-supply conditions, inter-crop price parity, as well as terms of trade between agricultural and non-agricultural sectors.