Centre increases MSP for kharif crops for 2023-24
What's the story
The Centre on Wednesday increased the minimum support price (MSP) for kharif crops for the marketing season of 2023-24.
The decision taken by the Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Narendra Modi, will encourage farmers to increase the sown area and diversify crops to maximize their income.
The MSP has been hiked for paddy, millet, maize, and tur, among others.
Statement
Biggest hike in years: Piyush Goyal
This year's raise is the highest compared to previous years, said Consumer Affairs, Food and Public Distribution Minister Piyush Goyal.
The MSP has been hiked keeping in mind the government's policy of ensuring at least 50% profit margin for farmers over the production cost.
Amid retail inflation experiencing a declining trend, farmers are likely to reap more benefits from the MSP hike.
Rates
MSP for paddy increased by Rs. 143
The MSP for paddy, the most widely grown crop in India, has been increased by Rs. 143 per quintal.
This takes the price for paddy's common variety to Rs. 2,183 per quintal and Rs. 2,203 per quintal for the Grade 'A' variety.
The MSP for cotton, millet, oilseeds, and pulses also increased by 4% and 12% among other crops.
Profit
Bajra to return highest profit margin at 82%
Bajra or pearl millet is expected to offer the highest profit margin at 82%, followed by tur (58%), soybean (52%) and urad (51%). Other crops are likely to return at least 50% profit.
The MSP is adjusted based on the recommendations of the Commission for Agricultural Costs and Prices (CACP). The cost of production is calculated based on the national average.
Details
Haryana farmers protested after government refused MSP on sunflower seeds
Notably, hundreds of farmers blocked the Delhi-Amritsar highway to protest against the Haryana government's decision not to buy sunflower seeds at MSP on Tuesday.
The government buys crops from farmers at MSP, regardless of market price, as a guarantee for farmers, and incentivizes them to cultivate more land, keeping the country's food security afloat.
Kharif crops are sown during June-July and harvested by October-November.