The Cabinet Committee on Economic Affairs approved the increase in the Minimum Support Prices (MSPs) for all mandated Kharif crops for the marketing season 2021-22 in June 2021. The highest absolute increase in MSP over the previous year has been recommended for ________ at ₹452 per quintal.
sesame
Understanding Kharif MSP Increase 2021-22
The Minimum Support Price (MSP) is a form of market intervention by the Government of India to insure agricultural producers against any sharp fall in farm prices. The Cabinet Committee on Economic Affairs (CCEA) periodically approves the MSPs for various crops, including the mandated Kharif crops, before the sowing season.
In June 2021, the CCEA gave its approval for increasing the Minimum Support Prices (MSPs) for all mandated Kharif crops for the marketing season 2021-22. This move was intended to ensure remunerative prices for farmers and encourage crop diversification.
Identifying the Crop with the Highest MSP Hike
The question specifically asks which crop received the highest absolute increase in MSP over the previous year (2020-21) for the 2021-22 marketing season among the mandated Kharif crops, with the increase being ₹452 per quintal.
Based on the government's announcement regarding the MSP increases for Kharif crops for 2021-22, the highest absolute increase was indeed recommended for sesame.
The MSP for sesame was increased by ₹452 per quintal, taking it from ₹6,855 per quintal in 2020-21 to ₹7,307 per quintal for the 2021-22 marketing season. This was the most significant absolute increase among all mandated Kharif crops for that season.
Kharif MSPs and Increases (2021-22 vs 2020-21)
Let's look at the MSPs for some key Kharif crops for the 2020-21 and 2021-22 marketing seasons and the corresponding absolute increase to confirm this.
| Kharif Crop | MSP 2020-21 (₹/quintal) | MSP 2021-22 (₹/quintal) | Absolute Increase (₹/quintal) |
|---|---|---|---|
| Paddy (Common) | 1868 | 1940 | 72 |
| Paddy (Grade A) | 1888 | 1960 | 72 |
| Jowar (Hybrid) | 2620 | 2738 | 118 |
| Bajra | 2150 | 2250 | 100 |
| Maize | 1850 | 1870 | 20 |
| Arhar (Tur) | 6000 | 6300 | 300 |
| Moong | 7196 | 7275 | 79 |
| Urad | 5940 | 6300 | 360 |
| Groundnut | 5275 | 5550 | 275 |
| Sunflower Seed | 5885 | 6010 | 125 |
| Soyabean (Yellow) | 3880 | 3950 | 70 |
| Sesame | 6855 | 7307 | 452 |
| Nigerseed | 6695 | 6930 | 235 |
| Cotton (Medium Staple) | 5515 | 5726 | 211 |
| Cotton (Long Staple) | 5825 | 6025 | 200 |
As shown in the table, the absolute increase of ₹452 per quintal was indeed the highest among all these crops and corresponds to sesame.
Therefore, the highest absolute increase in MSP over the previous year for the 2021-22 Kharif marketing season was recommended for sesame.
Revision Table: Key Concepts Reviewed
| Term | Definition/Context | Relevance to Question |
|---|---|---|
| MSP (Minimum Support Price) | Government price guarantee for certain agricultural crops. | The core subject of the question – the increase in MSP. |
| Kharif Crops | Crops sown in the monsoon season (typically June-July) and harvested in autumn (September-October). Examples: Paddy, Maize, Jowar, Bajra, Arhar, Moong, Urad, Cotton, Groundnut, Sesame, Soyabean. | The specific crop season for which the MSP increase was announced. |
| Marketing Season 2021-22 | The period following the harvest (e.g., October 2021 to September 2022) when farmers sell their produce. | The period for which the approved MSPs are applicable. |
| Absolute Increase | The simple difference between the new MSP and the old MSP (New MSP - Old MSP). | The specific metric used in the question to compare the MSP hikes across crops. |
| CCEA (Cabinet Committee on Economic Affairs) | A committee of the Union Cabinet responsible for major economic decisions, including approving MSPs. | The government body that approved the MSP increases. |
| Sesame | A Kharif oilseed crop. | The specific crop identified as having the highest absolute MSP increase in this context. |
Additional Information: MSP Mechanism and Purpose
The government announces MSPs for 22 mandated agricultural crops and Fair and Remunerative Price (FRP) for sugarcane. These prices are recommended by the Commission for Agricultural Costs and Prices (CACP) after considering various factors:
- Cost of production
- Changes in input prices
- Demand and supply situation
- Market price trends
- Inter-crop price parity
- Terms of trade between agriculture and non-agriculture sectors
- Likely implications for consumers and environment
The main objectives of MSP are:
- To protect farmers from distress sales and ensure they get a minimum profitable price for their produce.
- To incentivize farmers to adopt modern technology and better farming practices.
- To help in managing the production and supply of agricultural commodities in the country, ensuring food security.
- To encourage the cultivation of certain crops that are important for the nation's food security or require diversification.
The announcement of MSPs before the sowing season is crucial as it helps farmers make informed decisions about which crops to cultivate based on the price assurance provided by the government.
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