Year 2022: Increased MSP, Better Income Support Schemes For Indian Farmers

With 2022 coming to an end, it is time to look back at the Indian Agriculture Sector. As it goes, Agriculture is one of the most important sectors of India since independence. The Centre took strong steps to increase the income of the farmers and also, the production, thus reducing the reliance on imports. 

Here is a look back at 2002 for the agri sector:

Export of agricultural products—

The year 2022 saw an increase in the export of agricultural products. The export of agricultural products and related products increased by 19.99 per cent from 2020–2, from USD 41.86 billion to USD 50.24 billion. 

The main crops that experienced significant growth were wheat, which increased by 273.54 per cent, basmati rice which saw an increase of 27.29 per cent, raw cotton raw which increased by 48.43 per cent, castor oil which increased by 28.16 per cent, cereals which increased by 53.82 per cent and fresh fruit which increased by 14.11 per cent (768.54 to 876.96 Million USD).

Increase in Minimum Support Price (MSP)—

In 2022, the Centre increased the MSP for all required Kharif, Rabi, and other commercial crops with a return of at least 50 per cent above all India's weighted average cost of production from 2018–19. From Rs 1940 per quintal in January 2022 to Rs 2040 per quintal in December 2022, the MSP for paddy (common) has increased. 

From Rs 2015 per quintal in January 2022 to Rs 2125 per quintal in December 2022, the MSP for wheat too increased, giving more benefit to the farmers.

Increase in food grain output—

According to the Fourth Advance Estimates, food grain output climbed from 308.65 million tonnes in January 2022 to 315.72 million tonnes in December 2022. According to third advanced projections, the production of horticulture increased from 331.05 million MT in 2020–21 to 342.33 million MT in 2021–22. This is Indian horticulture's highest-ever production.

National mission for edible oils gets nod hectares—

The National Mission for Edible Oils (NMEO) got approval from the Union government with a budget of Rs 11,040 crore. This would add an extra 6.5 lakh hectares to the area planted with oil palm, of which 3.28 lakh hectares will be in the northeastern states and 3.22 lakh hectares in the rest of India. 

The mission's primary goal is to offer farmers viable prices for fresh fruit bunches (FFBs), tied to assured industry procurement using a less complex price-fixing methodology. If the price paid by the industry is less than the viability price up until October 2037, the Central Government will make a viability gap payment to farmers as compensation.

Income support schemes reach out to more—

The PM-KISAN scheme was launched in 2019 which is an income support scheme to farmers providing Rs 6000 per year in 3 equal instalments. According to the official data, under the PM-KISAN scheme, Rs 1.82 lakh crore was released to more than 11.74 crore farmers in January 2022 whereas more than Rs. 2 lakh crore has been released so far to more than 11 crore eligible farmers till December 2022.

Crop insurance coverage increased— 

In order to solve the issues of high premium prices for farmers and a decrease in insured sum due to capping, Pradhan Mantri Fasal Beema Yojna (PMFBY) was introduced in 2016. Since implementation, there have been 29.39 billion applicant farmers who have been enrolled, and more than 9.01 billion (Provisional) applicant farmers have received claims totalling more than Rs 1,04,196 billion up until January 2022. 

By December 2022, there have been 38 billion applicant farmers who have been enrolled, and more than 12.24 billion (Provisional) farmer applicants have received claims totalling more than Rs 1,28,522 billion. 

For every Rs 100 of premium paid by farmers, they have received Rs 484 in claims up until January 2022, when they paid nearly Rs 21,532 crore as their share of the premium against which they received over Rs 104196 crore (Provisional) in claims, compared to nearly Rs 25,192 crore up until December 2022.