14 of the 15 states had requested a higher MSP for paddy than the one announced by the Centre

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Fourteen of the fifteen states and union territories that proposed a paddy MSP advocated a higher MSP than the one set by the Union government.

The MSP for the kharif marketing season 2022-23 was declared on June 8 at Rs 2,040 per quintal for paddy (Common) and Rs 2,060 per quintal for paddy (Grade A).

On the basis of their production cost projections, all 15 states and UTs advised paddy MSPs in the range of Rs 2,000 per quintal to Rs 4,513 per quintal, according to a report by the Commission for Agricultural Costs and Prices (CACP), on which the government publishes MSPs for various commodities.

Andhra Pradesh, Andaman and Nicobar Islands, Bihar, Chhattisgarh, Gujarat, Jammu and Kashmir, Jharkhand, Karnataka, Kerala, Maharashtra, Odisha, Punjab, Tamil Nadu, Telangana, and West Bengal are the states and union territories in question.

According to the CACP’s ‘Price Policy for Kharif Crops of 2022-23 Season’ report, only Jammu & Kashmir requested a lower paddy MSP than the one provided by the Centre.

In reality, Jammu & Kashmir proposed the lowest paddy MSP (Rs 2,000 per quintal) among the 15 states and UTs.

Telangana proposed the highest price – Rs 4,513 per quintal.

According to the research, six states — Assam, Haryana, Himachal Pradesh, Madhya Pradesh, Uttar Pradesh, and Uttarakhand (all BJP-ruled) — did not propose a value for paddy MSP in 2022-23.

Paddy, the main crop of the kharif season, covers one-third of the total area under all foodgrain crops and accounts for around 40% of the country’s foodgrain basket.

Paddy (including kharif and rabi) accounted for 43.82 million hectares and 112.44 million tonnes, according to the Agriculture Ministry, out of the typical anticipated area of 126.22 million hectares and production of 278.79 million tonnes (average of 2015-16 to 2019-20).

The primary paddy-growing states are West Bengal, Uttar Pradesh, Punjab, Odisha, Andhra Pradesh, Telangana, Tamil Nadu, Chhattisgarh, Bihar, and Assam. The crop’s MSP is noteworthy since it helped 1.17 crore farmers during the kharif marketing season of 2021-22.

“A quantity of 810.05 LMT of Paddy (includes Kharif Crop 754.69 LMT and Rabi Crop 55.37 LMT) has been procured up to 29.05.2022, benefiting 117.05 lakh farmers with MSP value of Rs.1,58,770.64 crore,” the Union Food Ministry said in a statement on May 30.

The Centre notified MSP for all mandatory kharif crops, including paddy, on June 8. From Rs 1,940 per quintal in 2021-22, the MSP for paddy (common) was enhanced by 5.15 percent. In absolute terms, the increase of Rs 100 is the largest since 2018-19.

The government had declared a rise of Rs 200 per quintal — up from Rs 1,550 per quintal in 2017-18 — to implement its resolution to set the MSP at “at least 50% above the All-India weighted average.”

The price of paddy (grade A) in 2022-23 is 5.1% higher than the price of Rs 1,960 per quintal in 2021-22.

The majority of states have proposed a higher MSP for other kharif crops, similar to paddy.

Five states, for example, requested a higher MSP for Jowar than the one published by the Union government: Andhra Pradesh (Rs 3,334 per quintal), Gujarat (Rs 5,000), Karnataka (Rs 5,651), Maharashtra (Rs 4,331), and Telangana (Rs 7,712).

For 2022-23, the Centre set an MSP of Rs 2,970 for jowar (hybrid) and Rs 2,990 for jowar (maldandi). Only one state, Tamil Nadu, has proposed a lower MSP for jowar (Rs 2,940).

Tamil Nadu (Rs 2,318 per quintal) has proposed a lower MSP for Bajra than the one announced by the Centre (Rs 2,350 per quintal). A higher bajra MSP has been proposed by five other states.

The Centre has set the MSP for Tur (Arhar) and Urad at Rs 6,600 per quintal, whereas the states have proposed MSPs of Rs 6,500-Rs 10,880 per quintal for tur and Rs 6,700-Rs 13,679 quintal for urad, respectively.

The Centre has set MSPs for Medium Staple cotton at Rs 6,080 per quintal and Rs 6,380 for Long Staple cotton, while states have proposed MSPs ranging from Rs 6,026 to Rs 15,890.