Cabinet approves minimum support prices (MSP) for Kharif crops for marketing season 2023-24

Cabinet approves minimum support prices (MSP) for Kharif crops for marketing season 2023-24

The Cabinet Committee on Economic Affairs (CCEA) chaired by Prime Minister Narendra Modi has approved the revised minimum support prices (MSP) for all mandated Kharif crops for marketing season 2023-24.

The government has increased the MSP of Kharif crops for marketing season 2023-24, to ensure remunerative prices to the farmers for their produce and to encourage crop diversification.

MSP for Kharif Marketing Season 2023-24 (Rs. per quintal)
Crops MSP 2022-23 MSP 2023-24  Cost* KMS 2023-24 Increase in MSP over 2022-23 Margin over cost in per cent
Paddy -Common 2040 2183 1455 143 50
Paddy-Grade A^ 2060 2203 143
Jowar-Hybrid 2970 3180 2120 210 50
Jowar- Maldandi^ 2990 3225 235
Bajra 2350 2500 1371 150 82
Ragi 3578 3846 2564 268 50
Maize 1962 2090 1394 128 50
Tur /Arhar 6600 7000 4444 400 58
Moong 7755 8558 5705 803 50
Urad 6600 6950 4592 350 51
Groundnut 5850 6377 4251 527 50
Sunflower Seed 6400 6760 4505 360 50
Soybean (Yellow) 4300 4600 3029 300 52
Sesamum 7830 8635 5755 805 50
Nigerseed 7287 7734 5156 447 50
Cotton (Medium Staple) 6080 6620 4411 540 50
Cotton (Long Staple) ^ 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 the land, expenses incurred on use of material inputs like seeds, fertilisers, manures, irrigation charges, depreciation on implements and farm buildings, interest on working capital, diesel or electricity for the operation of pump sets, miscellaneous expenses and 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 minimum support prices 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 is estimated to be highest in the case of bajra (82 per cent) followed by tur (58 per cent), soybean (52 per cent) and urad (51 per cent). For the rest of the crops, margin to farmers over their cost of production is estimated to be at least 50 per cent,” the Government of India said in a statement.

“In recent years, the government has been promoting the cultivation of crops, other than cereals such as pulses, oilseeds, and nutri-cereals/millets, by offering a higher MSP for these crops. Additionally, the government has also launched various schemes and initiatives, such as the Rashtriya Krishi Vikas Yojana (RKVY), and the National Food Security Mission (NFSM), to encourage farmers to diversify their crops,” the government said.

As per Third Advance Estimates for 2022-23, total foodgrain production in the country is estimated at a record 330.5 million tonnes which is higher by 14.9 million tonnes as compared to the previous year 2021-22.

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