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

Utkarsh Classes Last Updated 20-06-2024

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

Agriculture 6 min read

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.

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

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.