Minimum Support Prices for Rabi Crops of 2015-16 approved by Govt

By | November 5, 2015
(Last Updated On: November 5, 2015)


05-November, 2015

MSP for Rabi Crops of 2015-16 season

The Cabinet Committee on Economic Affairs, chaired by the Prime Minister Shri Narendra Modi, has given its approval for the Minimum Support Prices (MSPs) for Rabi Crops of 2015-16 Season to be Marketed in 2016-17. The decision is based on recommendations of Commission for Agricultural Costs and Prices (CACP) for the Price Policy for Rabi Crops for the Marketing Season 2016-17.  CACP, which is an expert body,  takes into account the cost of production, overall demand-supply, domestic and international prices, inter-crop price parity, terms of trade between agricultural and non-agricultural sectors, the likely effect of the Price Policy on the rest of economy, besides ensuring rational utilization of production resources like land and water, while recommending MSPs.

The CACP being the expert body, its recommendations are generally accepted as such.  However, in view of the gap in the demand and  domestic supply  of pulses, the Cabinet has decided to give a bonus of Rs.75/- per quintal for rabi pulses over and above the recommendations of the CACP.  This is expected to give a strong price signal to farmers to increase acreage and invest for increase in productivity of pulses.

The Minimum Support Prices (MSPs) for all Rabi Crops of 2015-16 season to be marketed in 2016-17 have been increased and are given in table below:                                                                                         

CommodityMSP for 2014-15 seasonMSP for 2015-16 season


Increase in MSP over 2014-15Bonus  *
 (Rs per  quintal)(Rs per  quintal)Absolute%(Rs per  quintal)
Masur (Lentil)307533252508.175
Rapeseed/ Mustard3100   33502508.0

Note * Bonus on Rabi pulses is payable over and above the MSP

The prices would be effective from the Rabi marketing season 2016-17. The higher MSPs would increase investment and production through assured remunerative prices to farmers.

The Cabinet also directed that in order to strengthen the procurement mechanism for pulses and oilseeds, Food Corporation of India (FCI) will be the Central Nodal Agency for procurement of pulses and oilseeds.  To supplement the efforts of FCI, the National Agricultural Cooperative Marketing Federation of India Limited (NAFED), National Cooperative Consumers’ Federation (NCCF), Central Warehousing Corporation (CWC) and Small Farmers Agri – Business Consortium (SFAC) may also undertake procurement of oilseeds and pulses as per their capacity.

Besides increase in Minimum Support Prices (MSP) of Rabi crops, Government has taken several other farmer friendly initiatives over the last one year.  These, inter-alia, include the following :

  • In the Kharif the Government of India had declared a bonus of Rs 200 per quintal over and above the MSPs of Kharif pulses for 2015-16 season.
  • A Scheme to issue Soil Health Card to every farmer has been introduced.  Soil health management in the country is being promoted through setting up of soil & fertilizer testing laboratories and implementation of organic farming.
  • Government has also framed guidelines under Paramparagat Krishi Vikas Yojna (PKVY) to promote organic farming and develop potential market for organic products.
  • The Pradhan Mantri Krishi Sinchai Yojana, has been launched with the objective of creating sources of assured irrigation.
  • A dedicated Kisan Channel has been started by the Doordarshan to address various issues concerning farmers.
  • Government has also created portal on crops insurance in order to keep farmers better informed.
  • An initiative is being taken to set up a National Agriculture Market (NAM).  This would enable farmers to overcome the impediments in marketing of agricultural produce and get better price discovery.  A common e-market platform is being created and would be provided free of cost to the States/UTs.
  • Government has taken steps to introduce electronic trading which will facilitate single license for trading in the whole States/country as well as single point levy of market fee.
  • Government is also encouraging formation of Farmer Producer Organisations.
  • To stabilize prices of pulses and onions, Government has imported pulses and onions under the Price Stabilisation Fund.
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