Market Update/
MSPs for 2021 Kharif Crops Announced

The Modi administration has given farmers a gift: increased MSPs for 2021 kharif crops. This should please farmers and motivate them to sow kharif crops, which may increase production.

Pulses

The MSP for tuar, the main kharif season pulse crop, has been fixed at Rs. 6,300 per quintal, up Rs. 300 from last year’s MSP or Rs. 6,000. Similarly, the MSP for urad increased by Rs. 300 to Rs. 6,300 per quintal. The MSP for moong increased a more modest Rs. 79 to Rs. 7,275 per quintal. This will probably disappoint moong farmers and discourage moong sowing.

Oilseeds

The MSP for soybeans, the main kharif season oilseed crop, has been increased by Rs. 70 to Rs. 3,950 per quintal. The MSP for groundnuts has been fixed at Rs. 5,550. The MSP for sesame has increased by Rs. 452. The MSP for sesame has been fixed at Rs. 7,307 and that for niger seed at Rs. 6,930. In 2020-21, the MSP for niger seed was Rs. 6,695. The MSP for sunflower has been fixed at Rs. 6,015, up Rs. 130 from last cycle’s Rs. 5,885.

Cotton

The MSP for cotton, medium staple fiber, has been increased by Rs. 211 to Rs. 5,726. For long staple fiber, the MSP increased by Rs. 200 to Rs. 5,025.

Coarse Grains

The MSP for jwar has been increased by Rs. 118 to Rs. 2,738, the maldandi variety to Rs. 2,758. The MSP for millet has been increased from Rs. 2,150 last cycle to Rs. 2,250. The MSP for maize has been increased by Rs. 20 to Rs. 1,870. The MSP for ragi has been increased by Rs. 82.

The MSP for paddy has been increased by Rs. 72. With this increase, the MSP for normal paddy rose to Rs. 1,940 and for Grade A to Rs. 1,960.

The MSP of almost all crops has been fixed at 50% to 85% above the cost of production. Due to high prices, Madhya Pradesh and Maharashtra farmers may sow more soybeans instead of pulse and coarse grains. Gujurat and Rajasthan farmers may opt for ground nuts and caster seed.

Rahul Chauhan
Director, IGrain India
igrainind@gmail.com
+91 9350141815
Twitter igrain_india