• Union Cabinet has announced a Minimum Support Price (MSP) of 14 Kharif crops.
• The MSP hike, the first since the government was re-elected earlier this year, pales significantly when compared to increase in the last Kharif season, just before the general elections this April. The quantum of increase however, does not significantly deviate with the increase in non-election years.
• The MSP of rice, which was bought by Central and state governments last year at Rs 1,750-1,770 per quintal last year, has increased by Rs 65 this year to Rs 1,815-1,835.  
• The new MSPs stood at Rs 2,550-2570 for Jowar, Rs 200 for Bajra, Rs 3,150 for Ragi, Rs 1,760 for Maize, Rs 5,800 for Tur (Arhar), Rs 7,050 for Moong and Rs 5,700 for Urad. The MSP for cotton is now Rs 5150-5450 per quintal. Among oilseeds the MSPs for Groundnut, Sunflower seed, Soyabean, Sesamum and Nigerseed are Rs 5,090, Rs 5,650, Rs 3,710, Rs 6,485 and Rs 5,940 per quintal respectively.

About MSP:

• Minimum Support Price is the price at which government purchases crops from the farmers, whatever may be the price for the crops. Minimum Support Price is an important part of India’s agricultural price policy.
• The MSP helps to incentivize the framers and thus ensures adequate food grains production in the country. I gives sufficient remuneration to the farmers, provides food grains supply to buffer stocks and supports the food security programme through PDS and other programmes.

Aim of MSP:

• Assure remunerative and relatively stable price environment for the farmers by inducing them to increase production and thereby augment the availability of food grains.
• Improve economic access of food to people.
• Evolve a production pattern which is in line with overall needs of the economy.