Minimum Support Prices (MSP) for Kharif Crops of 2016-17 season

The Cabinet Committee on Economic Affairs, chaired by the Prime Minister Shri Narendra Modi, has given its approval for the increase in the Minimum Support Prices (MSPs) for all Kharif Crops of 2016-17 Season. Further, to incentivise cultivation of pulses and oilseeds , in the country Government has announced a bonus on these crops, payable over and above the approved MSP.  

The decision to increase MSPs is based on the  recommendations of Commission for Agricultural Costs and Prices (CACP) which takes into account the cost of production, overall demand-supply, domestic and international prices, inter-crop price parity, terms of trade between agricultural and non-agricultural sectors, the likely effect of the Price Policy on the rest of economy, besides ensuring rational utilization of production resources like land and water, while recommending MSPs.

The CACP being the expert body, its recommendations are generally accepted as such.  However, to incentivise cultivation of pulses and oilseeds, the Cabinet has decided to give a bonus, over and above the recommendations of the CACP, of Rs.425/- per quintal for kharif pulses, namely Arhar (Tur), Urad and Moong, a bonus of Rs 200/- per quintal for Sesamum and a bonus of Rs 100/- per quintal for other kharif oilseeds namely, Groundnut-in-shell, Sunflowerseed, Soyabean, and Nigerseed. There is an increasing gap between  the demand and domestic supply of pulses and oilseeds  and reliance on import is increasing. Government has, therefore, announced this bonus on pulses and oilseeds to give a strong price signal to farmers to increase acreage and invest for increase in productivity of these crops. The increase in  cultivation of leguminous pulses and oilseeds will also have additional environmental benefits as these crops are less water consuming and help in nitrogen fixation in the soil.   

 The Minimum Support Prices (MSPs) for all Kharif Crops of 2016-17 season have been increased and are given in table below: 

*MSP of soyabean will be applicable to both yellow and black varieties   

The prices would be effective from 1.10.2016.

Food Corporation of India (FCI) will be the designated central nodal agency for price support operations for cereals, pulses and oilseeds. Cotton Corporation of India (CCI) will be the central nodal agency for undertaking price support operations for Cotton.

Besides increase in Minimum Support Prices (MSP) of Kharif crops, Government has taken several farmer friendly initiatives over the last one year.  These, inter-alia, include the following: 

• The Government had declared a bonus, over and above the MSP, of Rs 200 per quintal for Kharif pulses of 2015-16 season and a bonus of Rs 75 per quintal for Rabi pulses of 2016-17 marketing season. 
• A new crop insurance scheme ‘Pradhan Mantri Fasal Bima Yojana’ has been launched by the Government. Under this scheme, the premium rates to be paid by farmers are very low - 2 % of sum insured for all Kharif crops, 1.5% for all Rabi crops and 5 % for commercial and horticulture crops. The new insurance scheme involves use of simple and smart technology through phones & remote sensing for quick estimation and early settlement of claims. The Government has also launched crop insurance portal and Mobile app “Crop Insurance” which will help farmers to find out complete details about insurance cover available in their area and to calculate the insurance premium for notified crops. During kharif 2016-17 season, 24 states have already intiated necessary action for implementation in their state. Out of which, 15 states have already completed the biding tendering process for selection of insurance companies. 

• The Government has also launched a scheme to develop a pan India electronic trading platform under ‘National Agriculture Market’ (NAM) scheme with the aim to integrate 585 regulated markets with the common e-market platform. Each State is being encouraged to undertake three major reforms - allow electronic trading, have a single license valid throughout the State and a single entry point market fee. It will also enable farmers to discover better prices for their produce. 21 markets in 8 states have already been brought on the e-NAM platform. 

• Soil Health Cards are being issued to farmers across the country. These will be renewed every two years. The card provides information on fertility status of soil and a soil test based advisory on use of fertilizers. As on May 31^st 2016, 191,80 lakh Soil Health Cards have been distributed. 

• Under Paramparagat Krishi Vikas Yojna (PKVY), the Government is promoting organic farming and development of potential market for organic products. 

• The Pradhan Mantri Krishi Sinchai Yojana is being implemented with the vision of extending the coverage of irrigation ‘Har Khet ko Pani’ and improving water use efficiency ‘Per Drop More Crop ' in a focused manner with end to end solution on source creation, distribution, management, field application and extension activities. 

• Government is focusing on improving production and productivity of crops such as rice, wheat, coarse grains and pulses under the National Food Security Mission (NFSM).  For 2016-17, out of the total Central Share of Rs 1700 crore under NFSM, Rs, 1100 crore  has been allocated to improve pulse production.
• A dedicated Kisan Channel has been started by the Doordarshan to provide 24 x 7 information in the hands of farmers regarding weather updates, agri-mandi data etc.

• Government is also encouraging formation of Farmer Producer Organisations.

• To stabilize prices of pulses, Government is creating buffer stocks pulses through both domestic procurement and import. 

• A handbook for women farmers ‘Farm Women Friendly Hand Book’ containing special provisions and package of assistance which women farmers can claim under various on-going Missions/ Submissions/ Schemes of Department of Agriculture, Cooperation & Farmers Welfare has been brought out. Women farmers/beneficiaries could approach the nearest Project Director (ATMA) / Deputy Director (Agriculture) office at District or Block Technology Manager/Assistant Technology Managers at Block level for instant help and facilitation for availing the benefits.