The Union Cabinet has approved the Minimum Support Prices (MSPs) for Kharif crops for the 2024-25 marketing season. The MSP for the most popular Kharif crop, paddy, has been increased by Rs 117 per quintal, from Rs 2,183 per quintal in 2023-24 to Rs 2,300 per quintal in 2024-25.
Key Highlights
Paddy MSP: The MSP for paddy has been increased by Rs 117 per quintal, from Rs 2,183 per quintal in 2023-24 to Rs 2,300 per quintal in 2024-25.
Oilseeds and Pulses: The highest absolute increase in MSP over the previous year has been recommended for oilseeds and pulses, including nigerseed (Rs.983/- per quintal), sesamum (Rs.632/- per quintal), and tur/arhar (Rs.550/- per quintal).
Other Crops: The MSP for other crops like jowar, bajra, ragi, maize, moong, urad, groundnut, sunflower seed, soybean, and cotton has also been increased, with the highest increase for cotton at Rs 501 per quintal.
Context and Objectives
The increase in MSP for Kharif Crops is in line with the Union Budget 2018-19 announcement of fixing the MSPs at a level of at least 1.5 times of the All-India weighted average Cost of Production (CoP), aiming at reasonably fair remuneration for farmers. The expected margin to farmers over their cost of production is estimated to be highest in case of bajra (82%) followed by tur (58%), soybean (52%), and urad (51%) for the rest of the crops, the margin is estimated to be at least 50%.
Impact and Significance
The increase in MSP for Kharif Crops is expected to incentivize farmers to boost output and diversify their crops. The government aims to ensure remunerative prices to the growers for their produce, particularly for pulses and oilseeds, which are critical for the country’s food security and import dependency. The hike in MSP for soybean, for instance, is expected to encourage farmers to shift to more remunerative crops, reducing the country’s reliance on imports.
Future Outlook
The Commission for Agricultural Costs and Prices (CACP) has already submitted its recommendation for hike in MSP of kharif crops to the agriculture ministry, and the decision to hike remunerative prices for 2024-25 kharif season would be taken up by the cabinet committee on economic affairs (CCEA) soon after the new government is sworn in. The increase in MSP is expected to provide remunerative prices to farmers while encouraging them to opt for crop diversification, which is crucial for the country’s food security and agricultural growth.
The Union Cabinet’s approval of MSPs for Kharif crops for the 2024-25 marketing season is a significant step towards ensuring fair remuneration for farmers and promoting agricultural growth. The increase in MSP for various crops, particularly oilseeds and pulses, is expected to incentivize farmers to boost output and diversify their crops, ultimately contributing to the country’s food security and economic growth.
What are the benefits of increasing MSP for oilseeds and pulses
- Boosting Domestic Production: Higher MSPs for oilseeds and pulses incentivize farmers to cultivate these crops, thereby reducing the country’s dependence on imports and enhancing domestic production.
- Reducing Import Dependence: The increased MSPs aim to cut down India’s dependence on foreign oil imports by boosting domestic production, thereby protecting Indian consumers from price shocks due to global factors.
- Enhancing Nutrition Security: Oilseeds and pulses are rich in nutrients and are essential for a balanced diet. By promoting their production, the government can ensure a steady supply of these essential commodities, contributing to nutrition security.
- Encouraging Sustainable Agriculture: Oilseeds and pulses are often less water-consuming and have more nutritive content compared to other crops. This shift in focus can help reduce groundwater depletion and promote sustainable agriculture practices.
- Improving Farmers’ Incomes: Higher MSPs for oilseeds and pulses ensure that farmers receive a fair price for their produce, thereby improving their incomes and livelihood.
- Reducing Carbon Emissions: By promoting the cultivation of oilseeds and pulses, the government can reduce the carbon footprint associated with water-guzzling crops like paddy and wheat.
- Enhancing Soil Health: Oilseeds and pulses are known for their ability to improve soil health through crop rotation and intercropping. This can lead to long-term soil fertility and reduced chemical fertilizer usage.
- Reducing Government Imports: By increasing domestic production, the government can reduce its imports of oilseeds and pulses, thereby saving foreign exchange and reducing the burden on the public distribution system
- Promoting Inter-Cropping: Higher MSPs for oilseeds and pulses can incentivize farmers to adopt inter-cropping practices, which can lead to more diverse and resilient agricultural systems.
- Supporting the Atma Nirbhar Plan: The increased MSPs for oilseeds and pulses are part of the government’s efforts to achieve self-sufficiency in food production under the Atma Nirbhar plan, which aims to reduce dependence on imports and promote domestic production.
