Cabinet approves increase in minimum support price of Kharif crops

Cabinet committee on Economic Affairs on Wednesday approved an increase in minimum support prices (MSP) for Kharif crops with the aim of guaranteeing profitable prices to farmers for their crops and promoting the cultivation of a variety of crops.

Cabinet approved a 10 per cent increase in MSP for Moong dal for the new Kharif marketing season.

A 9 per cent increase in MSP of groundnut and 7 per cent in paddy has also been approved.

This is the highest growth in MSP for Kharif crops in recent years.

The increase in MSP for Kharif crops in Marketing season 2023-24 is in line with the Union Budget 2018-19 announcement of fixing the MSP at a level of at least 1.5 times of the All-India weighted average Cost of Production, aiming at reasonably fair remuneration for the farmers.

The expected margin to farmers over their cost of production are estimated to be highest in case of bajra (82 per cent) followed by tur (58 per cent), soybean (52 per cent) and urad (51 per cent).

For rest of the crops, margin to farmers over their cost of production is estimated to be at least 50 per cent.

Government has been promoting the cultivation of crops, other than cereals such as pulses, oilseeds and Nutrition-cereals/Shree Anna, by offering a higher MSP for these crops.

Additionally, government has also launched various schemes and initiatives, such as the Rashtriya Krishi Vikas Yojana (RKVY), the National Food Security Mission (NFSM), to encourage farmers to diversify their crops.

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