Union Cabinet Approves MSP for Kharif Crops 2023-24

Union Cabinet Approves Minimum Support Prices (MSP) for Kharif Crops for Marketing Season 2023-24

Introduction:

The Cabinet Committee on Economic Affairs (CCEA), under the leadership of Prime Minister Shri Narendra Modi, has given its approval for an increase in the Minimum Support Prices (MSP) for all mandated Kharif Crops for the Marketing Season 2023-24. This decision aims to provide remunerative prices to farmers and encourage crop diversification. The MSPs for various Kharif crops have been revised to ensure fair remuneration, as outlined in the table below.

Minimum Support Prices for Kharif Marketing Season (KMS) 2023-24:

(Rs. per quintal)

Crop MSP 2014-15 MSP 2022-23 MSP 2023-24 Cost* KMS 2023-24 Increase in MSP over 2022-23 Margin over cost in percent
Paddy – Common 1360 2040 2183 1455  143  50
Paddy – Grade A^ 1400 2060 2203  – 143
Jowar – Hybrid 1530 2970 3180 2120 210  50
Jowar – Maldandi^ 1550 2990 3225  – 235
Bajra 1250 2350 2500 1371 150 82
Ragi 1550 3578 3846 2564 268 50
Maize 1310 1962 2090 1394 128 50
Tur/Arhar 4350 6600 7000 4444 400 58
Moong 4600 7755 8558 5705 803 50
Urad 4350 6600 6950 4592 350 51
Groundnut 4000 5850 6377 4251 527 50
Sunflower Seed 3750 6400 6760 4505 360 50
Soybean (Yellow) 2560 4300 4600 3029 300 52
Sesamum 4600 7830 8635 5755 805 50
Nigerseed 3600 7287 7734 5156 447 50
Cotton (Medium Staple) 3750 6080 6620 4411 540 50
Cotton (Long Staple) ^ 4050 6380 7020 640

Source- Cabinet Committee on Economic Affairs (CCEA), Press Information Bureau (PIB) DELHI

*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 land, expenses incurred on the use of material inputs like seeds, fertilizers, manures, irrigation charges, depreciation on implements and farm buildings, interest on working capital, diesel/electricity for operation of pump sets, etc., miscellaneous expenses, and imputed value of family labour.

^ Cost data is not separately compiled for Paddy (Grade A), Jowar (Maldandi), and Cotton (Long staple).

Objectives:

The objectives of the Minimum Support Prices (MSP) for Kharif Crops for the Marketing Season 2023-24 are as follows:

Promoting Fair Remuneration for Farmers:

The increase in MSP for Kharif Crops for Marketing Season 2023-24 aligns with the Union Budget 2018-19’s commitment to fixing the MSP at a minimum of 1.5 times the All-India weighted average Cost of Production. This initiative aims to ensure reasonably fair remuneration for farmers. Notably, the expected margin for farmers over their cost of production is estimated to be the highest in the case of bajra (82%), followed by tur (58%), soybean (52%), and urad (51%). For other crops, the margin over the cost of production is estimated to be at least 50%.

Encouraging Crop Diversification:

In recent years, the government has been actively promoting the cultivation of crops other than cereals, such as pulses, oilseeds, and Nutri-cereals/Shree Anna, by offering higher MSPs for these crops. This approach encourages farmers to diversify their crops, which leads to improved agricultural sustainability and increased income opportunities.

Supporting Schemes and Initiatives:

To further enhance crop diversification, the government has launched various schemes and initiatives. These include the Rashtriya Krishi Vikas Yojana (RKVY) and the National Food Security Mission (NFSM). These programs provide support and incentives to farmers, encouraging them to adopt diversified cropping patterns.

Record Food grain Production:

According to the Third Advance Estimates for 2022-23, India’s total food grain production is estimated to reach a record 330.5 million tonnes. This represents an increase of 14.9 million tonnes compared to the previous year (2021-22), marking the highest growth in the past five years. These figures highlight the government’s efforts to boost agricultural productivity and ensure food security for the nation.

Achieving Food Security:

The MSPs play a crucial role in ensuring food security for the nation. By providing remunerative prices to farmers, the government encourages them to increase the production of essential food crops. This helps in maintaining an adequate supply of food grains in the market and meeting the nutritional needs of the population.

Implementation of Budgetary Commitments:

The increase in MSPs aligns with the commitment made in the Union Budget 2018-19 to fix the MSP at a minimum of 1.5 times the cost of production. By implementing this commitment, the government aims to fulfill its promises to the farming community and address the issue of income disparity in the agricultural sector.

Summary:

The Cabinet Committee on Economic Affairs, chaired by Prime Minister Shri Narendra Modi, has approved the Minimum Support Prices (MSP) for Kharif Crops for the Marketing Season 2023-24. The revised MSPs aim to provide fair remuneration to farmers and encourage crop diversification. The increase in MSP is in line with the commitment to fix it at a minimum of 1.5 times the All-India weighted average Cost of Production, ensuring reasonable profits for farmers. The government has been actively promoting the cultivation of pulses, oilseeds, and Nutri-cereals by offering higher MSPs. Various schemes and initiatives have also been launched to support farmers in adopting diversified cropping patterns. Additionally, India has achieved a record foodgrain production, indicating the government’s efforts to enhance agricultural productivity and ensure food security. The approval of increased MSPs underscores the government’s commitment to uplift the farming community and sustain agricultural growth in the country.

Conclusion:

The Union Cabinet’s approval of increased MSPs for Kharif Crops for the Marketing Season 2023-24 is a significant step towards providing fair remuneration to farmers and promoting crop diversification. By incentivizing the cultivation of various crops and implementing supportive schemes, the government aims to enhance agricultural sustainability and improve farmers’ income. The record foodgrain production further demonstrates the positive impact of these initiatives, ensuring food security for the nation.

MSP for Kharif Crops for Marketing Season 2023-24 pdf

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