Economic Survey 2023: Centre's MSP Boost For Crops Powered Agriculture Sector To Robust Growth

Economic Survey Highlights: The agriculture sector grew 4.6% annually in the last 6 years. Key factors boosting the sector include higher MSP, growing agri-related credit, income support schemes, and insurances.

The Economic Survey 2022-23 was tabled by Finance Minister Nirmala Sitharaman on Tuesday in the parliament. The Economic Survey said that India’s economy will grow 6.5% in 2023-24, compared to 7% in the current fiscal and 8.7% in 2021-22.  As all eyes are on the Budget 2023, where the expectations for the agriculture sector remain upbeat, the Eco Survey 2022-23 showed that the performance of the agriculture and allied sector has been buoyant.

As per the Eco Survey tabled in the Parliament, the average annual growth rate of the agriculture sector has remained at 4.6 per cent over the last six years. The overall robust growth of the agriculture sector can be attributed to increasing Minimum Support Price (MSP), agricultural credit, income support schemes and agricultural insurance, as per the economic survey.

MSP Returns Over Cost of Production

Centre in its economic survey for the year 2022-23 states, it has been increasing the MSP for all 22 Kharif, Rabi and other commercial crops with a margin of at least 50 per cent over the all-India weighted average cost of production since the agricultural year 2018-19. Higher MSP was also granted to pulses and oilseeds to match evolving dietary habits and attain self-sufficiency.

Key Highlights — Eco Survey 2022-23 Agriculture Sector

• Private investment in agriculture reaches 9.3% in 2020-21.


• Agricultural exports hit an all-time high of $50.2 billion in 2021-22.


• 11.3 crore farmers covered under PM KISAN in April-July 2022-23 cycle.


• Institutional credit for the agriculture sector grows to 18.6 lakh crore in 2021-22.


• Foodgrains production in India sustained at 315.7 million tonnes in 2021-22.


• Free foodgrains for 81.4 crore beneficiaries under National Food Security Act for 1 year starting 2023.


• 11.3 crore farmers covered under PM KISAN April-July 2022-23 payment cycle.


• Rs 13,681 crores sanctioned for post-harvest support and community farms under Agriculture Infrastructure Fund.


• Online, transparent bidding system in place with 1.74 crore farmers and 2.39 lakh traders under National Agriculture Market (e-NAM).


• Organic farming is promoted through Farmer Producer Organizations (FPO) under Paramparagat Krishi Vikas Yojana (PKVY).


• India promotes millet through the International Year of Millet initiative.