It added, “Government has increased the MSP of Rabi crops for RMS 2022-23, to ensure remunerative prices to the growers for their produce.”

“The highest absolute increase in MSP over the previous year has been recommended for Lentil (Masur) and Rapeseeds & Mustard (Rs.400 per quintal each) followed by gram (Rs.130 per quintal). In case of safflower, there has been an increase of Rs.114 per quintal, in comparison to last year. The differential remuneration is aimed at encouraging crop diversification,” it further said.

The statement shows that wheat MSP for the rabi crop of 2021-22, to be marketed in the rabi marketing season 2022-23, has been fixed at Rs 2015 per quintal—just 2.03 percent higher than Rs 1,975 in the last year.

In percentage terms, the increase in wheat MSP is the lowest in the last 12 years. The last time when the MSP for wheat saw the lowest increase was in 2009-10, when it was hiked by only 1.85 percent—Rs 1,100 per quintal in 2009-10 against Rs 1,080 in 2008-09.

In fact, the data available with the Ministry of Agriculture and Farmers’ Welfare show a steady decline in the rate of increase in MSP for wheat since 2017-18 when it was hiked by 6.77 per cent. It saw lower increases in 2018-19 (6.05 %), 2019-20 (4.62 %) and 2020-21 (2.60%).

The lower increase in wheat MSP assumes significance as Punjab and Haryana, the two states which have been witnessing farmers’ protests against three farm laws, supply most in the national food basket.

In the rabi marketing season 2021-22, a quantity of 132.10 lakh metric tonnes of wheat was procured in Punjab, while the figure stood at 84.93 lakh metric tonnes for Haryana. In fact, out of the total 433.32 lakh metric tonnes of wheat procured during RMS 2021-22, a little over half came from these two states.

The statement shows that the highest increase of Rs 400 per quintal, in absolute terms, has been announced for lentil (masur) and rapeseed and mustard. The MSP for rapeseed and mustard has been hiked to Rs 5050 per quintal for RMS 2022-23, which is Rs 400 higher than Rs 4,650 in the 2021-22 marketing season.

The statement said, “Concerted efforts were made over the last few years to realign the MSPs in favour of oilseeds, pulses and coarse cereals to encourage farmers shift to larger area under these crops and adopt best technologies and farm practices, to correct demand — supply imbalance.”

“Additionally, National Mission on Edible Oils-Oil Palm (NMEO-OP), Centrally Sponsored Scheme recently announced by the government, will help in increasing the domestic production of edible oils and reduce imports dependency,” the statement said.

The other crop that has seen a higher increase in MSP is lentil (masur). The lentil MPS has been fixed at Rs 5,500 per quintal—7.84% or Rs 400 higher than Rs 5,100 per quintal in RMS 2021-22.

The MSP for Gram has also been increased to Rs 5,230 per quintal—Rs 130 or 2.55 percent higher than Rs 5,100 per quintal the last year.

The MSP for safflower has been increased to Rs 5,441 per quintal—Rs 114 or 2.14 percent—higher than Rs 5,327 per quintal in the last year.

The MSP for barley has seen an increase of Rs 35 (2.19 percent) from Rs 1,600 per quintal in RMS 2021-22 to Rs 1,635 in RMS 2022-23.

The statement said, “The increase in MSP for Rabi Crops for RMS 2022-23 is in line with the Union Budget 2018-19 announcement of fixing the MSPs at a level of at least 1.5 times of the all-India weighted average cost of production, aiming a reasonably fair remuneration for the fanners.”

“The expected returns to farmers over their cost of production are estimated to be highest in case of wheat and rapeseed & mustard (100% each), followed by lentil (79%); gram (74%); barley (60%); safflower (50%),” it added.