Cabinet approves hike in Minimum Support Prices (MSP) for Kharif Crops for 2024-25 Marketing Season

Cabinet approves hike in Minimum Support Prices (MSP) for Kharif Crops for 2024-25 Marketing Season

New Delhi: The Union Cabinet, chaired by Prime Minister Narendra Modi, Wednesday, approved an increase in the Minimum Support Prices (MSP) for all mandated Kharif crops for the 2024-25 marketing season. This decision aims to ensure remunerative prices for the farmers. The Union Cabinet has recommended the highest absolute increases in MSP over the previous year for oilseeds and pulses, with nigerseed seeing an increase of Rs. 983 per quintal, followed by sesamum at Rs. 632 per quintal, and tur/arhar at Rs. 550 per quintal.

Minimum Support Prices for Kharif Crops for 2024-25 Marketing Season (Rs. per quintal)
Crops MSP
2024-25
Cost* KMS
2024-25
Margin over
cost (%)
MSP
2023-24
MSP Increase
in 2024-25
over 2023-24
Cereals
Paddy Common 2300 1533 50 2183 117
Grade A^ 2320 2203 117
Jowar Hybrid 3371 2247 50 3180 191
Maldandi” 3421 3225 196
Bajra 2625 1485 77 2500 125
Ragi 4290 2860 50 3846 444
Maize 2225 1447 54 2090 135
Pulses
Tur /Arhar 7550 4761 59 7000 550
Moong 8682 5788 50 8558 124
Crops MSP
2024-25
Cost* KMS
2024-25
Margin over
cost (%)
MSP
2023-24
MSP Increase in 2024-25 over 2023-24
Urad 7400 4883 52 6950 450
Oilseeds
Groundnut 6783 4522 50 6377 406
Sunflower Seed 7280 4853 50 6760 520
Soybean (Yellow) 4892 3261 50 4600 292
Sesamum 9267 6178 50 8635 632
Nigerseed 8717 5811 50 7734 983
Commercial
Cotton (Medium Staple) 7121 4747 50 6620 501
(Long Stapler 7521 7020 501

*Refers to costs including all paid-out expenses such as those for hired labour, bullock/machine labour, rent for leased land, material inputs like seeds, fertilisers, manures, irrigation charges, depreciation on implements and farm buildings, interest on working capital, diesel and electricity for pump sets, miscellaneous expenses, and the imputed value of family labour. Cost data are not separately compiled for Paddy (Grade A), Jowar (Maldandi), and Cotton (Long staple).

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The increase in MSP for the 2024-25 Kharif Marketing Season aligns with the Union Budget 2018-19 announcement of setting the MSP at least 1.5 times the all-India weighted average cost of production. The expected margins over the cost of production are estimated to be highest for 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 is estimated to be 50 per cent.

In recent years, the Government has been promoting the cultivation of crops other than cereals, such as pulses, oilseeds, and nutri-cereals/Shree Anna (Millets), by offering higher MSPs for these crops.

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