MSP Hike: Centre Approves Minimum Support Price For 14 Kharif Crops | Full List

The Union Cabinet on Wednesday approved the Minimum Support Prices or MSPs for 14 Kharif crops. Announcing the Centre’s decision, Union Minister Ashwini Vaishnaw said the move will cost the exchequer Rs 2 lakh crore. He added that the MSP for paddy has been hiked by Rs 117 per quintal, being fixed at Rs 2,300 per quintal, for the 2024-25 kharif crop season.

Besides paddy, the crops for which MSPs were cleared by the Union Cabinet in its latest meeting included ragi, bajra, jowar, maize, and cotton. Addressing the media after the Cabinet meeting, Vaishnaw stated, "With today's decision, the farmers will get around Rs 2 lakh crores as MSP. This is Rs 35,000 crores more than the previous season." He further said that the MSP for cotton has been increased by Rs 501.

MSP List: New Minimum Support Prices For Kharif Season

The Union Minister affirmed that the Prime Minister Narendra Modi-led government is dedicated to providing farmers with prices that are 50 per cent higher than their input costs. He noted that recent decisions are aligned with this objective. According to news agency ANI, the highest absolute increase in MSP over the previous year has been recommended for oilseeds and pulses.

Vaishnaw highlighted that the government adopted a clear policy in the 2018 Union Budget, stipulating that the MSP should be at least 1.5 times the cost of production. This principle was followed in the latest MSP hike, with costs scientifically calculated by the CACP, he added.

The Food Corporation of India currently holds a record stockpile of around 53.4 million tonnes of rice, which is four times the required buffer for July 1 and sufficient to meet demand under welfare schemes for one year without any new procurement.

Despite a nationwide rainfall deficit of about 20 per cent since the monsoon season began on June 1, the meteorological department reports that weather conditions are now favorable for the further advancement of the rains.

#WATCH | On Union Cabinet decision on MSP for Kharif season crops, Information & Broadcasting Minister Ashwini Vaishnaw says, "With today's decision, the farmers will get around Rs 2 lakh crores as MSP. This is Rs 35,000 crores more than the previous season." pic.twitter.com/cUjJIqpzJ1

— ANI (@ANI) June 19, 2024

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Why Union Govt Increased MSP On Kharif Crops

The government has increased the Minimum Support Price (MSP) for Kharif crops for the 2024-25 marketing season to ensure remunerative prices for growers. The highest absolute increase in MSP over the previous year has been recommended for oilseeds and pulses, with niger seed seeing an increase of Rs 983 per quintal, followed by sesamum at Rs 632 per quintal, and tur/arhar at Rs 550 per quintal. Cost data are not separately compiled for Paddy (Grade A), Jowar (Maldandi), and Cotton (Long staple).

"The increase in MSP for Kharif Crops for Marketing Season 2024-25 is in line with the Union Budget 2018-19 announcement of fixing the MSP at a level of at least 1.5 times the All-India weighted average cost of production, The expected margin to farmers over their cost of production is estimated to be highest in case of bajra (77 per cent) followed by tur (59 per cent), maize (54 per cent) and urad (52 per cent). For the rest of the crops, the margin to farmers over their cost of production is estimated to be at 50 per cent," a government press release said.

In recent years, the government has promoted the cultivation of crops other than cereals, such as pulses, oilseeds, and Nutri-cereals/Shree Anna, by offering higher MSPs for these crops.

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MSP Hike: PM Modi Lauds Cabinet Decision On MSP

Prime Minister Narendra Modi on Wednesday lauded the Union Cabinet's decisions to increase the Minimum Support Price (MSP) on 14 Kharif crops. "Our government is continuously taking important steps for the welfare of our farmer brothers and sisters across the country. In this direction, today the Cabinet has approved the increase in the minimum support price of all major Kharif crops for the year 2024-25," PM Modi posted on X.

Upon beginning his third consecutive term, PM Modi granted his first approval for the release of the 17th instalment of the PM Kisan Nidhi. This instalment, worth approximately Rs 20,000 crore, was released during an event in Varanasi on Tuesday.

MSP Hike: Opposition Says Hike 'Insignificant'

The opposition BJD and Congress criticised the Centre’s decision to increase the minimum support price (MSP) of paddy from Rs 2,183 to Rs 2,300 per quintal, calling the Rs 117 hike insignificant. BJD’s Prasanna Acharya stated that the minimal increase doesn't cover farmers' harvest costs. "Farmers in Odisha and other states are dissatisfied over the Rs 117 hike, which is like peanuts for them. With the meagre hike, the farmers cannot even recover the harvest cost, let alone profit,” he said.