Government increases MSP for Kharif crops for marketing season 24-25

The Union Cabinet Committee on Economic Affairs (CCEA), in a meeting held on 19 June 2024 and chaired by Prime Minister Narendra Modi, has approved the Minimum Support Price (MSP) for Kharif crops for the marketing season 2024-25. 

The agriculture marketing season in India is from July to June. 

In the Union Budget 2018-19 the government of India had announced that the MSP of a crop shall be at least 1.5 times the All-India weighted average Cost of Production.

In the recently announced MSP for the 2024-25 Kharif season, Bajra has the highest margin over the cost of production (77 percent), followed by Tur (59 percent), maize (54 percent), and Urad (52 percent). For the rest of the crops, the margin over the cost of production is estimated to be 50 percent.

MSP for Mandated Kharif Crops for Marketing Season 2024-25

Following are the announced MSPs for the mandated Kharif crops for the 2024-25 marketing season.

What is the Minimum Support Price (MSP)?

The MSP for the mandated crops is announced by the government of India before the start of the Kharif and Rabi agriculture seasons.

In 1966-67, the government introduced the  Minimum Support Price with the objective 

to :

• encourage farmers to adopt modern scientific farming to increase production,
•  to raise productivity and crop production in the country to meet the emerging demand patterns in the country.

Commission for Agricultural Costs & Prices (CACP) and its Role 

The Commission for Agricultural Costs & Prices (CACP) was set up in 1965 as an expert committee under the Union Ministry of Agriculture and Farmers Welfare. 

It calculates the MSP of mandated crops and recommends them to the government. 

The government is not bound to accept the CACP's recommendations, which are advisory in nature.

Mandated Crops under MSP

At present, the CACP recommends MSP for 22 crops and for sugarcane it recommends fair and remunerative price (FRP). 

The mandated crops are;

• Cereals -Wheat, Paddy, Wheat, Barley, Ragi, Maize, Sorghum, Pearl millet,
• Pulses- Chickpea / Gram, Tur, Moong, Urad, Lentil
• Oilseeds - Peanut, Rapeseed, Soybean, Sesame, Sunflower, Safflower, Niger seed
• Commercial crops -Copra, Sugarcane, Cotton, Raw jute

The Department of Agriculture and Cooperation, Government of India, fixes the MSP for Toria and De-Husked coconut based on the MSPs of Rapeseed/Mustard Seed and Copra, respectively. 

Cropping Season in India

According to the Indian Council of Agricultural Research, Kharif, Rabi, and Zaid are the three main cropping seasons in India.

Kharif Season 

It coincides with the onset of the South West Monsoon, with the sowing season being June/July and the harvesting season being September-October.

Major crops are paddy(rice), cotton, soybean, moong, toor(arhar) maize, jawar, bajra, urad, cotton, jute, groundnut and soyabean.

Rabi Crops 

It is sown during the October -December months and harvested in March/April.

Major crops are Barley, peas, sunflower, mustard, wheat gram, etc.

Zaid Crops 

It is a period after the harvesting of the rabi crops and before the sowing of the kharif crops. 

Major crops are cucumber, vegetables and fodder crops, watermelon, muskmelon.

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