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Union Cabinet approves MSP for Kharif Crops for Marketing Season 2023-24 » Bhajpa Ki Baat

Union Cabinet approves MSP for Kharif Crops for Marketing Season 2023-24 » Kamal Sandesh

The Cabinet Committee on Economic Affairs (CCEA) chaired by the Hon’ble Prime Minister Shri Narendra Modi has approved the increase in the Minimum Support Prices (MSP) for all mandated Kharif Crops for Marketing Season 2023-24.

Government has increased the MSP of Kharif Crops for Marketing Season 2023-24, to ensure remunerative prices to the growers for their produce and to encourage crop diversification, as provided in the table below:

Minimum Support Prices for Kharif Marketing Season (KMS) 2023-24

(Rs. per quintal)

Crops MSP 2014-15 MSP 2022-23 MSP 2023-24  Cost* KMS 2023-24 Increase in MSP over 2022-23 Margin over cost in per cent
Paddy -Common 1360 2040 2183 1455 143 50
Paddy-Grade A^ 1400 2060 2203 143
Jowar-Hybrid 1530 2970 3180 2120 210 50
Jowar- Maldandi^ 1550 2990 3225 235
Bajra 1250 2350 2500 1371 150 82
Ragi 1550 3578 3846 2564 268 50
Maize 1310 1962 2090 1394 128 50
Tur /Arhar 4350 6600 7000 4444 400 58
Moong 4600 7755 8558 5705 803 50
Urad 4350 6600 6950 4592 350 51
Groundnut 4000 5850 6377 4251 527 50
Sunflower Seed 3750 6400 6760 4505 360 50
Soybean (Yellow) 2560 4300 4600 3029 300 52
Sesamum 4600 7830 8635 5755 805 50
Nigerseed 3600 7287 7734 5156 447 50
Cotton (Medium Staple) 3750 6080 6620 4411 540 50
Cotton (Long Staple) ^ 4050 6380 7020 640

 

*Refers to cost which includes all paid out costs such as those incurred on account of hired human labour, bullock labour/machine labour, rent paid for leased in land, expenses incurred on use of material inputs like seeds, fertilizers, manures, irrigation charges, depreciation on implements and farm buildings, interest on working capital, diesel/electricity for operation of pump sets etc., miscellaneous expenses and imputed value of family labour.

^ 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 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%) followed by tur (58%), soybean (52%) and urad (51%). For rest of the crops, margin to farmers over their cost of production is estimated to be at least 50%.

In the recent years, Government has been promoting the cultivation of crops, other than cereals such as pulses, oilseeds, and Nutri-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.

As per Third Advance Estimates for 2022-23, total Foodgrain production in the country is estimated at record 330.5 million tonnes which is higher by14.9 million tonnes as compared to the previous year 2021-22. This is the highest increase in the last 5 year.

(News Source -Except for the headline, this story has not been edited by Bhajpa Ki Baat staff and is published from a kamal sandesh feed.)

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