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Ministry of Agriculture & Farmers Welfare

Significant increase in Minimum Support Price

Posted On: 29 FEB 2024 12:20 AM

Significant increase in Minimum Support Price

 

The Minimum Support Price (MSP) is a crucial mechanism through which the government supports farmers by purchasing their crops at a pre-determined price. Annually, the Government of India announces MSPs for 22 major agricultural commodities, including 14 Kharif crops, 6 Rabi crops, and 2 commercial crops. In addition, MSP for toria and dehusked coconut is also fixed based on MSPs of rapeseed & mustard, and copra, respectively.

Minimum Support Price (IN RS. /QUINTAL)

Aligned with the commitment outlined in the Union Budget 2018-19, the Government has consistently raised MSPs to ensure they are set at least 50 per cent above the All India weighted average Cost of Production. Notably, this calculation includes considerations such as family labour, acknowledging the collective efforts of entire farming households rather than solely focusing on individual farmers.

Furthermore, the Government's proactive measures have ensured enhanced procurement and timely payments to farmers, ensuring that the benefits of MSP hikes translate into tangible support. The procurement of foodgrains has increased from 761.40 lakh metric tonnes in 2014-15 to 1062.69 lakh metric tonnes in 2022-23, benefitting more than 1.6 crore farmers. The expenditure incurred (at MSP values) on procurement of foodgrains increased from Rs. 1.06 lakh crores to Rs. 2.28 lakh crores.

Notably, during the last 10 years (2014-24), the government spent Rs. 12.18 Lakh Crore to buy 6751 LMT of Paddy and Rs. 5.44 Lakh Crore to buy 3073 LMT of Wheat. This is a substantial increase as compared to the previous 10 years (2004-14) when the government spent Rs. 4.40 Lakh Crore to buy 4590 LMT of Paddy and Rs. 2.27 Lakh Crore to buy 2140 LMT of Wheat. 

 

Minimum Support Price (IN RS. /QUINTAL)

Type

Commodity

2013-14

 

2023-24*

Increase

Cost of Production

Margin

KHARIF CROPS

PADDY (COMMON)

1310

 

2183

67%

1455

50%

PADDY (GRADE A)

1345

 

2203

64%

 

 

JOWAR (HYBRID)

1500

 

3180

112%

2120

50%

JOWAR (MALDANDI)

1520

 

3225

112%

 

 

BAJRA

1250

 

2500

100%

1371

82%

RAGI

1500

 

3846

156%

2564

50%

MAIZE

1310

 

2090

60%

1394

50%

TUR (ARHAR)

4300

 

7000

63%

4444

58%

MOONG

4500

 

8558

90%

5705

50%

URAD

4300

 

6950

62%

4592

51%

GROUNDNUT

4000

 

6377

59%

4251

50%

SUNFLOWER SEED

3700

 

6760

83%

4505

50%

SOYABEEN (YELLOW)

2560

 

4600

80%

3029

52%

SESAMUM

2500

 

8635

245%

5755

50%

NIGERSEED

3500

 

7734

121%

5156

50%

COTTON (MEDIUM STAPLE)

3700

 

6620

79%

4411

50%

COTTON (LONG STAPLE)

4000

 

7020

76%

 

 

RABI CROPS

WHEAT

1400

 

2275

63%

1128

102%

BARLEY

1100

 

1850

68%

1158

60%

GRAM

3100

 

5440

75%

3400

60%

MASUR (LENTIL)

2950

 

6425

118%

3405

89%

RAPESEED & MUSTARD

3050

 

5650

85%

2855

98%

SAFFLOWER

3000

 

5800

93%

3807

52%

OTHER CROPS

COPRA (MILLING)

5250

 

10860

107%

 

 

COPRA (BALL)

5500

 

11750

114%

 

 

JUTE

2300

 

5050

120%

 

 

*For Rabi crops, the years are 2024-2025

Source: 1,  2,  3,  4 5,  6,   

See Factsheet in PDF

***

Nimish Rustagi/Himanshu Pathak/Ritu Kataria/Pinak Pani Datta

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