Cabinet approves increase in MSP for all mandated Kharif Crops for 2023-24 season
The Cabinet Committee on Economic Affairs (CCEA) today approved an increase in Minimum Support Price, MSP, for all mandated Kharif Crops for Marketing Season 2023-24. The Cabinet has taken this decision to ensure remunerative prices to growers for their produce and to encourage crop diversification. Briefing media in New Delhi this afternoon, Union Minister Piyush Goyal said this year’s increased MSP is the biggest in the last several years.
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 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 at 82 percent followed by tur at 58 percent, soybean at 52 percent, and urad at 51 percent. For the rest of the crops, the margin to farmers over their cost of production is estimated to be at least 50 percent.
In recent years, Government has been promoting the cultivation of crops, other than cereals such as pulses, oilseeds, and Nutri-cereals or Shree Anna, 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, and National Food Security Mission to encourage farmers to diversify their crops.
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. This is the highest increase in the last five years.
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|
|Cotton (Medium Staple)||3750||6080||6620||4411||540||50|
|Cotton (Long Staple) ^||4050||6380||7020||–||640||–|