Govt approves MSPs for rabi crops, wheat hike at 17-year-low, Pg5

Key Highlights:

• The Cabinet Committee on Economic Affairs (CCEA) approved Minimum Support Prices (MSPs) for six Rabi crops for the 2027-28 season.
• Wheat, India's second-largest crop, received a 17-year-low hike of Rs 25 per quintal (0.97%), setting its MSP at Rs 2,610 per quintal.
• Safflower saw the highest increase, with its MSP rising by Rs 675 (10.32%) to Rs 7,215 per quintal.
• The government projects procurement of 324 lakh tonnes, ensuring farmers receive Rs 90,962 crore in MSP across the six Rabi crops.
• The Price Support Scheme (PSS) was approved for Kharif season 2026-27 procurement of pulses worth Rs 5,347.99 crore in UP, Karnataka, and Telangana.

Detailed Insights:

• The marginal hike in wheat MSP is attributed to overflowing wheat stocks in the country.
• The approved wheat MSP of Rs 2,610 per quintal is 106% of the cost of cultivation.
• Other Rabi crops for which MSPs were announced include rapeseed and mustard, lentil (masur), barley, and gram.
• The government aims to encourage the cultivation of pulses due to their currently low productivity.
• The Price Support Scheme (PSS) procurement for Kharif season 2026-27 included pigeon pea (tur) and green gram (moong).
• Uttar Pradesh received the largest share of the PSS procurement, amounting to Rs 3,992 crore.

Key Concepts Involved:

• Minimum Support Price (MSP): A government-guaranteed price for certain agricultural produce to protect farmers from price fluctuations.
• Rabi Crops: Crops sown in winter (October-December) and harvested in spring (April-June), such as wheat and barley.
• Kharif Crops: Crops sown in the monsoon season (June-July) and harvested in autumn (September-October), such as rice and maize.
• Cabinet Committee on Economic Affairs (CCEA): A high-level committee of the Union Cabinet responsible for major economic policy decisions.
• Price Support Scheme (PSS): A government scheme under which designated central agencies procure agricultural commodities at MSP when market prices fall below it.