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Union Cabinet Approves Increase in MSP of Rabi Crops in Season 2024-25

Utkarsh Classes 18-10-2023
Union Cabinet Approves Increase in MSP of Rabi Crops in Season 2024-25 Agriculture 5 min read

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.

FAQ

Answer : Rs 2275 per quintal

Answer : Commission for Agricultural Costs & Prices (CACP)

Answer : July to June

Answer : 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.

Answer : 1965
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