Cabinet Approves MSP for Kharif Crops for Marketing Season 2024–25
By Lokmat English Desk | Updated: June 19, 2024 22:49 IST2024-06-19T22:21:26+5:302024-06-19T22:49:47+5:30
The Union Cabinet, under the leadership of Prime Minister Shri Narendra Modi, announced today its approval for an increase ...
Cabinet Approves MSP for Kharif Crops for Marketing Season 2024–25
The Union Cabinet, under the leadership of Prime Minister Shri Narendra Modi, announced today its approval for an increase in the Minimum Support Prices (MSP) for all mandated Kharif Crops for the Marketing Season 2024-25.
The decision aims to ensure that growers receive remunerative prices for their produce. Notably, the highest absolute increase in MSP compared to the previous year has been recommended for oilseeds and pulses. Among these, nigerseed sees a significant hike of Rs. 983/- per quintal, followed by sesamum with an increase of Rs. 632/- per quintal, and tur/arhar with Rs. 550/- per quintal.
Here are the details of the Minimum Support Prices for Kharif crops for Marketing Season 2024-25 (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 Staple) | 7521 | - | - | 7020 | 501 |
The increase in Minimum Support Prices (MSP) for Kharif Crops for Marketing Season 2024-25 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. The expected margin to farmers over their cost of production is estimated to be the highest in the case of bajra (77%), followed by tur (59%), maize (54%), and urad (52%). For the rest of the crops, the margin to farmers over their cost of production is estimated to be 50%.
In recent years, the government has been promoting the cultivation of crops other than cereals, such as pulses and oilseeds, and Nutri-cereals/Shree Anna, by offering a higher MSP for these crops.
During the period 2003-04 to 2013-14, for the 14 crops covered under the Kharif Marketing Season, the minimum absolute increase in MSP was Rs. 745/- per quintal for Bajra, and the maximum absolute increase was Rs. 3,130/- per quintal for Moong. While during the period 2013-14 to 2023-24, the minimum absolute increase in MSP was Rs. 780/- per quintal for Maize, and the maximum absolute increase was Rs. 4,234/- per quintal for Nigerseed.
Rs. per quintal:
| Crops | MSP 2003-04 | MSP 2013-14 | MSP 2023-24 | Increase in MSP in 2013-14 over 2003-04 (D=B-A) | Increase in MSP in 2023-24 over 2013-14 (E=C-B) |
|---|---|---|---|---|---|
| A | B | C | D | E | |
| Cereals | |||||
| Paddy | |||||
| Common | 550 | 1310 | 2183 | 760 | 873 |
| Grade A^ | 580 | 1345 | 2203 | 765 | 858 |
| Jowar | |||||
| Hybrid | 505 | 1500 | 3180 | 995 | 1680 |
| MaldandiA | - | 1520 | 3225 | - | 1705 |
| Bajra | 505 | 1250 | 2500 | 745 | 1250 |
| Ragi | 505 | 1500 | 3846 | 995 | 2346 |
| Maize | 505 | 1310 | 2090 | 805 | 780 |
| Pulses | |||||
| Tur/Arhar | 1360 | 4300 | 7000 | 2940 | 2700 |
| Moong | 1370 | 4500 | 8558 | 3130 | 4058 |
| Urad | 1370 | 4300 | 6950 | 2930 | 2650 |
| Oilseeds | |||||
| Groundnut | 1400 | 4000 | 6377 | 2600 | 2377 |
| Sunflower Seed | 1250 | 3700 | 6760 | 2450 | 3060 |
| Soybean (Yellow) | 930 | 2560 | 4600 | 1630 | 2040 |
| Sesamum | 1485 | 4500 | 8635 | 3015 | 4135 |
| Nigerseed | 1155 | 3500 | 7734 | 2345 | 4234 |
| Commercial | |||||
| Cotton | |||||
| (Medium Staple) | 1725 | 3700 | 6620 | 1975 | 2920 |
| (Long Staple)" | 1925 | 4000 | 7020 | 2075 | 3020 |
During the period 2004-05 to 2013-14, the procurement of the 14 crops covered under the Kharif Marketing Season was 4,675.98 Lakhs Metric Ton (LMT), while during the period 2014-15 to 2023-24, procurement of these crops was 7,108.65 LMT.
Procurement of Kharif Crops from 2004-05 to 2013-14 and from 2014-15 to 2023-24, in LMT (Lakh Metric Tons):
| Crops | 2004-05 to 2013-14 | 2014-15 to 2023-24 |
|---|---|---|
| Cereals | ||
| Paddy | 4,590.39 | 6,914.98 |
| Jowar | 1.92 | 5.64 |
| Bajra | 5.97 | 14.09 |
| Ragi | 0.92 | 21.31 |
| Maize | 36.94 | 8.20 |
| Pulses | ||
| Tur /Arhar | 0.60 | 19.55 |
| Moong | 0.00 | 1 |
| Urad | 0.86 | 8.75 |
| Oilseeds | ||
| Groundnut | 3.45 | 32.28 |
| Sunflower Seed | 0.28 | - |
| Soybean (Yellow) | 0.01 | 1.10 |
| Sesamum | 0.05 | 0.03 |
| Nigerseed | 0.00 | 0.00 |
| Commercial | ||
| Cotton | 34.59 | 63.41 |
| Total | 4,675.98 | 7,108.65 |
As per the 3rd Advance Estimates of production for 2023-24, total foodgrain production in the country is estimated at 3288.6 Lakhs Metric Ton (LMT), and oilseeds production is touching 395.9 LMT. During 2023-24, kharif production of rice, pulses, oilseeds, and nutri-cereals/Shree Anna, and cotton is estimated to be 1143.7 LMT, 68.6 LMT, 241.2 LMT, 130.3 LMT, and 325.2 Lakh bales, respectively.
Open in app