To ensure remunerative prices to the growers for their produce, the Cabinet Committee on Economic Affairs, chaired by Prime Minister Narendra Modi, has approved increase in the Minimum Support Prices (MSPs) for all mandated Kharif crops, including cotton, for marketing season 2021-22. Farmers may earn at least 50 percent more over their production cost.
The comprehensive cost of production for cotton for 2021-22 was calculated at ₹3,817 per quintal. The cost includes all paid on costs such as those incurred on account of hired human labour, bullock labour machine labour, rent paid for leased in land, expenses incurred on use of material inputs like seeds, fertilisers, manures, irrigation charges, depreciation on implements and farm buildings, interest on working capital, diesel/electricity for operation of pump sets etc., miscellaneous expenses and imputed value of family labour.
The increase in MSP for Kharif crops for marketing season 2021-22 is in line with the Union Budget 2018-19 announcement of fixing the MSPs at a level of at least 1.5 times of the All-India weighted average Cost of Production (CoP), aiming at reasonably fair remuneration for the farmers.
Besides MSP, the Umbrella Scheme “Pradhan Mantri AnnadataAaySanraksHan Abhiyan’ (PM-AASHA) announced by the government in 2018 will aid in providing remunerative return to farmers for their produce. The Umbrella Scheme consists of three sub-schemes i.e. Price Support Scheme (PSS), Price Deficiency Payment Scheme (PDPS) and Private Procurement & Stockist Scheme (PPSS) on a pilot basis, an official release said.