The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved an increase in the Minimum Support Prices (MSP) for all mandated Kharif Crops for the Marketing Season 2024-25. The move has increased the MSP of 14 crops.
This move aims to ensure that growers receive remunerative prices for their produce. Notably, the highest absolute increases in MSP over the previous year have been recommended for oilseeds and pulses, with nigerseed seeing an increase of Rs 983 per quintal, sesamum Rs 632 per quintal, and tur/arhar Rs 550 per quintal.
The increase aligns with the Union Budget 2018-19 announcement, which aimed to fix the MSP at a minimum of 1.5 times the all-India weighted average cost of production. The estimated margins for farmers over their production costs are highest for bajra (77 percent), followed by tur (59 percent), maize (54 percent), and urad (52 percent). For other crops, the margin is estimated to be around 50 percent.
In recent years, the government has been encouraging the cultivation of pulses, oilseeds, and Nutri-cereals/Shree Anna by offering higher MSPs for these crops. This shift in focus is part of a broader strategy to diversify agricultural production and ensure better income for farmers.
From 2003-04 to 2013-14, the minimum absolute increase in MSP for the 14 crops under the Kharif Marketing Season was Rs. 745 per quintal for bajra, while the maximum increase was Rs. 3,130 per quintal for moong. From 2013-14 to 2023-24, the minimum increase was Rs. 780 per quintal for maize, and the maximum was Rs. 4,234 per quintal for nigerseed.
Procurement of these crops has also seen a significant increase. Between 2004-05 and 2013-14, the procurement was 4,675.98 Lakh Metric Tons (LMT), which increased to 7,108.65 LMT from 2014-15 to 2023-24.
According to the 3rd Advance Estimates of production for 2023-24, total foodgrain production in the country is estimated at 3,288.6 LMT, and oilseeds production is expected to reach 395.9 LMT. Specifically, the estimated Kharif production includes 1,143.7 LMT of rice, 68.6 LMT of pulses, 241.2 LMT of oilseeds, 130.3 LMT of Nutri-cereals/Shree Anna, and 325.2 lakh bales of cotton.
