The Union Cabinet Committee on Economic Affairs (CCEA) chaired by Prime Minister Narendra Modi on 18 October 2023 has approved the Minimum Support Price (MSP) for Rabi Crops for marketing season 2024-25.

The agriculture marketing season in India is from July to June. The maximum increase in MSP price is in lentils (masur) at Rs.425 per quintal, followed by rapeseed & mustard at Rs.200 per quintal.

The government of India, in the Union Budget 2018-19, had announced that the MSP will be at least 1.5 times the All-India weighted average Cost of Production.

Minimum Support Prices for all Rabi crops for Marketing Season 2024-25

(Rs per quintal)

Serial No.	Crops	MSP 2022-23	MSP 2023-24	Cost of production 2023-24	Increase in MSP	Margin over cost(in percent)
1	Wheat	2125	2275	1128	150	102
2	Barley	1735	1850	1158	115	60
3	Gram	5335	5440	3400	105	60
4	Lentil(Masur)	6000	6425	3405	425	89
5	Rapeseed and Mustard	5450	5650	2855	200	98
6	Safflower	5650	5800	3807	150	52

Minimum Support Price (MSP)

The MSP is announced by the government of India before the Kharif and Rabi seasons.

The Minimum Support Price was introduced in India in 1966-67 to

: encourage farmers to adopt modern scientific technology for farming,
to raise productivity and grain 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.

However, the recommendations of the CACP are not mandatory for the government.

Mandated Crops under MSP

The CACP recommends MSP for 22 crops and fair and remunerative price (FRP) for sugarcane.

The mandated crops are;

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

MSP for Toria and De-Husked coconut is fixed by the Department of Agriculture and Cooperation, Government of India, on the basis of MSPs of Rapeseed/Mustard Seed and Copra, respectively.

Cropping Season in India

India has three cropping seasons — Kharif, Rabi and Zaid

Kharif Season

It coincides with the onset of the South West Monsoon. It is sown in June/July and harvested in 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 in the winter season during October -December months and harvested in March/April.

Major crops are Wheat, barley, peas, gram, mustard 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 watermelon, muskmelon, cucumber, vegetables and fodder crops.