minimum support price-2021-22 (msp)

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Minimum Support Price-2021-22 (MSP) Reviving the Backbone of Nation’s Growth

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Page 1: Minimum Support Price-2021-22 (MSP)

Minimum Support Price-2021-22(MSP)

Reviving the Backbone of Nation’s Growth

Page 2: Minimum Support Price-2021-22 (MSP)

CROPS COVERED UNDER MSPKHARIF CROPS (14)

1. Paddy 2. Jawar3. Bajra4. Ragi5. Maize6. Arhar7. Moong8. Urad9. Cotton10.Ground Nuts11.Sunflower12.Soyabean13.Sesamum14.Nigerseed

RABI CROPS (7)

1. Wheat 2. Barley3. Gram4. Masur5. Rapeseed & Mustard6. Safflower7. Torai

CALENDAR YEAR CROPS (4)

1. Copra2. De-husked Coconut

3. Jute4. Sugar Cane (FRP)

• CACP recommends MSP for 22 crops before the sowing

period each year

• MSP derived for Toria based on MSP for Rapeseeds & Mustard and for De-husked Coconut on the Basis of MSP of Copra.

• Fair and Remunerative prices for Sugar is also declared

Page 3: Minimum Support Price-2021-22 (MSP)

MSP for Rabi Marketing Season 2022-23

Crop

Cost* of

production

for RMS

2021-22

MSP for

RMS

2021-22

Cost* of

production

for RMS

2022-23

MSP for

RMS

2022-23

Increase in

MSP for

2022-23

(Absolute)

Return

over cost

(in per

cent)

Wheat 960 1975 1008 2015 40 100

Barley 971 1600 1019 1635 35 60

Gram 2866 5100 3004 5230 130 74

Lentil

(Masur)2864 5100 3079 5500 400 79

Rapeseed/

Mustard2415 4650 2523 5050 400 100

Safflower 3551 5327 3627 5441 114 50

Page 4: Minimum Support Price-2021-22 (MSP)

Timely announcement of MSP for Rabi 2022-23• Normally MSP for Rabi season was announced

in October

• Last year it was announced on 23rd September and for the year 2022-23 it was further advanced and announced on 8th September 2021

• The MSP for Paddy has gone from Rs 1360 per quintal in 2014-15 to Rs 1940 per quintal in 2021-22, a 43% increase.

• The MSP for Wheat has gone from Rs 1450 per quintal in 2014-15 to Rs 2015 per quintal in 2021-22, a 39% increase.

• Between 2014-15 to 2021-22, there has been substantial hike in MSP for crops like jowar(79%); ragi (118%); arhar (45%); moong (58%); gram (65%), masur (79%); sunflower (60%); nigerseed (93%); rapeseed & mustard (63%).

• With demand and supply situation undergoing change as a result of higher income, and focus on Atamnirbhar Bharat, Government has been leveraging MSP framework towards crop diversification, especially pulses and oilseeds.

YearDate of MSP

Announcement of RABI CROPS

2011-12 25.10.2011

2012-1301.11.2012 & 26.12.2012

2013-14 17.10.2013

2014-15 29.10.2014

2015-16 05.11.2015

2016-17 15.11.2016

2017-18 24.10.2017

2018-19 3.10.2018

2019-20 23.10.2019

2020-21 21.09.2020

2021-22 8.09.2021

Page 5: Minimum Support Price-2021-22 (MSP)

Increase in Procurement at MSP over the yearCrop 5 years from 2009-10

to 2013-14

Last 5 Years

( 2016-17 to 2020-21)

Increase in

Times

Qty

in LMT

MSP Value

(Rs in Crore)

Qty.

in LMT

MSP Value

(Rs in Crore)

Qty. MSP

Value

Paddy 2,495 2,88,871 3,449 6,02,156 1.38 2.08

Wheat 1,395 1,68,223 1,627 2,85,071 1.17 1.69

Pulses 1.52 645 112.63 56,798 74.18 88.08

Oilseeds 3.65 1,454 59.20 26,503 16.22 18.23

Cotton * 29.15 5821 211.65 59,094 7.26 10.15

*Qty in Lakh Bales

Page 6: Minimum Support Price-2021-22 (MSP)

All time High Paddy Procurement in 2020-21

63

,92

7.6

5

66

,94

8.8

4

74

,05

3.8

8

85

,88

0.6

9

90

,61

5.7

6

11

7,2

92

.88

14

2,4

09

.69

16

5,9

56

.90

475.30 478.20 510.22

568.23 568.54

660.11

773.45

879.01

-

100

200

300

400

500

600

700

800

900

1,000

-

20,000

40,000

60,000

80,000

100,000

120,000

140,000

160,000

180,000

2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21

MSP Value ( Rs in Crore) Qty in LMT

Page 7: Minimum Support Price-2021-22 (MSP)

All Time High Wheat Procurement During 2021-22

33

,87

4

39

,23

2

40

,72

8

35

,01

6

50

,08

9 62

,10

4

62

,80

3 75

,06

0

250.92

280.23 280.88

229.61

308.24

357.95

341.32

389.93

-

50

100

150

200

250

300

350

400

450

-

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21

MSP Value ( Rs in Crore) Wheat (in LMT)$

Page 8: Minimum Support Price-2021-22 (MSP)

Wheat Procurement Centres

14,644

20,163 21,106

-

5,000

10,000

15,000

20,000

25,000

RMS 2019-20 RMS 2020-21 RMS 2021-22

No. of Centres

Page 9: Minimum Support Price-2021-22 (MSP)

Paddy Procurement Centres

57,315

67,124

74,609

-

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

KMS 2018-19 KMS 2019-20 KMS 2020-21

No. of Centres

Page 10: Minimum Support Price-2021-22 (MSP)

Increase in Pulses procurement Between 2009-14 Vs 2016-22

Qty In MT

2009-2014 2016-17 to 2020-21

URAD (In MT) 85,130.34 871,905.14

TOOR (In MT) 66,664.76 3,261,895.35

MOONG (In MT) - 1,120,594.32

MASOOR (In MT) - 304,615.60

GRAM (In MT) 36.08 5,704,270.43

-

2,000,000.00

4,000,000.00

6,000,000.00

8,000,000.00

10,000,000.00

12,000,000.00

Axi

s Ti

tle

Page 11: Minimum Support Price-2021-22 (MSP)

Increase in Oilseeds Procurement Between 2009-14 Vs 2016-21

2009-2014 2016-17 to 2020-21

SUNFLOWER SEED (In MT) 7,242.45 22,837.24

SOYABEAN (In MT) - 102,608.68

SESAMUM SEED (In MT) 1,884.62 3,419.81

NIGERSEED (In MT) - 15.90

MUSTARD SEED (In MT) - 2,803,390.08

GROUNDNUT (In MT) 355,835.28 2,987,892.38

-

1,000,000.00

2,000,000.00

3,000,000.00

4,000,000.00

5,000,000.00

6,000,000.00

7,000,000.00

Qty

in M

T

Page 12: Minimum Support Price-2021-22 (MSP)

MSP Procurement in Punjab • During RMS 2021-22, the Punjab and Haryana, for the first

time, Direct Benefit Transfer (DBT) was introduced & MSPpayment of wheat purchased from the farmers was onlinedirectly made into their bank accounts –

• Earlier the payment of MSP to the farmers used to be madethrough Arhityas.

• MSP Procurement In Punjab

Crop Season Procurement(in LMT)

No of Centers MSP value (Rs in Corer)

FarmersBenefited

Wheat RMS 2021-22 132.22 3851 26,133.81 8,87,521

Paddy KMS 2020-21 202.82 4151 38,293.23 10,57,674

Page 13: Minimum Support Price-2021-22 (MSP)

MSP Procurement in Haryana

Crop SeasonProcurement

(in LMT) No of

CentersMSP value

(Rs in Corer)Farmers

Benefited

Wheat RMS 2021-22 84.93 364 16,774.05 7,60,636

Paddy KMS 2020-21 56.55 198 10,676.14 5,49,466

Page 14: Minimum Support Price-2021-22 (MSP)

Preparedness for KMS 2021-22• Fresh crop arrivals of Kharif Marketing Season (KMS) 2021-22

season is expected to arrive soon.

• Approval accorded for procurement of 40,000 MT of Pulses under Price Support Scheme (PSS) during KMS 2021-22 in Karnataka .

• Paddy procurement during KMS 2021-22 will commence in various producing states from Oct onwards .

Page 15: Minimum Support Price-2021-22 (MSP)

THANKS