Govt increases MSP returns for various kharif crops by 6%

MSP is a floor price determined by the Centre for crops aimed to avoid distress sale by signalling a minimum rate for private traders.

The Centre hiked minimum selling price (MSP) for various kharif crops for the summer-sown season, raising them by up to 6%, following a decision taken by the cabinet on Wednesday.

Farmers reap a kharif harvest in eastern Rajasthan. (HT File )

MSP is a floor price determined by the Centre for crops aimed to avoid distress sale by signalling a minimum rate for private traders.

The government, through the state-run Food Corporation of India, buys large quantities of cereals from farmers at MSP rates and distributes them to beneficiaries via the public distribution system (PDS).

The government raises minimum support prices of crops twice a year, once ahead of the winter-sown (rabi) season and the second time for the summer-sown (kharif) season.

The planting of the kharif crops like rice has so far covered 56.50 lakh hectare (ha) across the nation in the 2021-22 kharif season, according to a report by the agriculture ministry released in March.

Farmers begin the harvesting of kharif crops following the harvesting of rabi crops. These crops are rainfed and its sowing picks up with onset of southwest monsoon from June.

The MSP hike also comes amid the ongoing protests against the three farm laws. Farmers have demanded that the government bring legislation to guarantee remunerative MSP to all farmers.