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.
Following are the announced MSPs for the mandated Kharif crops for the 2024-25 marketing season.
Serial No. |
Crops |
MSP 2024-25 (Rs. Per Quintal) |
Cost of production 2024-25 (Rs. Per Quintal) |
Margin over cost (in percent) |
MSP 2023-24 (Rs. Per Quintal) |
Increase in MSP as compared to 23-24 (Rs. Per Quintal) |
1 |
Paddy Common |
2300 |
1533 |
50 |
2183 |
117 |
2 |
Paddy Grade A |
2320 |
- |
- |
2203 |
117 |
3 |
Jowar (Hybrid) |
3371 |
2247 |
50 |
3180 |
191 |
4 |
Jowar (Maldand)i |
3421 |
- |
- |
3225 |
196 |
5 |
Bajra |
2625 |
1485 |
77 |
2500 |
125 |
6 |
Ragi |
4290 |
2860 |
50 |
3846 |
444 |
7 |
Maize |
2225 |
1447 |
54 |
2090 |
135 |
8 |
Tur/Arhar |
7550 |
4761 |
59 |
7000 |
550 |
9 |
Moong |
8682 |
5788 |
50 |
8558 |
124 |
10 |
Urad |
7400 |
4883 |
52 |
6950 |
450 |
11 |
Groundnut |
6783 |
4522 |
50 |
6377 |
406 |
12 |
Sunflower seed |
7280 |
4853 |
50 |
6760 |
520 |
13 |
Soyabean(Yellow) |
4892 |
3261 |
50 |
4600 |
292 |
14 |
Sesamum |
9267 |
6178 |
50 |
8635 |
632 |
15 |
Nigerseed |
8717 |
5811 |
50 |
7734 |
983 |
16 |
Cotton (Medium Staple) |
7121 |
4747 |
50 |
6620 |
501 |
Cotton (Long Staple) |
7521 |
- |
- |
7020 |
501 |
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 :
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.
At present, the CACP recommends MSP for 22 crops and for sugarcane it recommends fair and remunerative price (FRP).
The mandated crops are;
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.
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.