Centre approves MSP worth 1.5 times the cost of production on 14 Kharif crops

The Cabinet decided to raise MSPs for all 14 kharif crops in the first significant decision of Prime Minister Narendra Modi’s third term in office. This move was made in accordance with the government’s “clear policy,” which stipulates that MSPs must remain at least 1.5 times higher than output costs as determined by the government. Minister Ashwini Vaishnaw of Information and Broadcasting stated. However, just four of these crops—bajra (77%), arhar dal (59%), maize (54%), and black gramme (52%), have MSPs that will give farmers a margin of more than 50% above their production costs.

Under the direction of Prime Minister Narendra Modi, the Union Cabinet approved the Minimum Support Price (MSP) for 14 Kharif crops on Wednesday. The MSP is 1.5 times more than the cost of production.

Paddy, the season’s primary crop, would enjoy an MSP hike of ₹117 per quintal, giving farmers a margin of exactly 50%. The increase occurs despite the fact that the government already has a record rice stockpile, more than four times the needed buffer, but it is noteworthy in light of the impending elections in crucial states. Kharif sowing typically begins in June, with the arrival of the southwest monsoon, and the crop marketing season will last from October 2024 to September 2025.

Minister Ashwini Vaishnaw of Union Information and Broadcasting announced the decisions, saying, “The government had taken a very clear policy decision that the MSP has to be at least 1.5 times the cost of the production in the 2018 Budget.” This time, the decision was made with this principle in mind. This time, each crop will have at least 50% more MSP than it did previously.”

“With today’s decision, the farmers will get around Rs 2 lakh crore as MSP. This is Rs 35,000 crore more than the previous season,” he added.

The Agriculture Ministry has released a release stating that the maximum suggested MSP rise for oilseeds and pulses is Rs 983 per quintal for nigerseed, Rs 632 per quintal for sesamum, and Rs 550 per quintal for Arhar dal.

The maximum recommended price (MSP) for Nigerseed has risen to Rs 8,717 from Rs 5,811, for Sesamum it has climbed to Rs 9,267 from Rs 6,178, and for Arhar dal it has gone to Rs 7,550 from Rs 4,761.

In a similar vein, the MSP for Jowar has increased from Rs 2,247 to Rs 3,371, while the MSP for Paddy has increased from Rs 1,533 to Rs 2,300.

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