Centre hikes MSP for 14 kharif crops by 1.5 times more than production cost

The Union Cabinet on 19th of June announced a hike in Minimum Support Price in 14 Kharif crops. Announcing the decision, Information and Broadcasting Minister Ashwini Vaishnaw said that the hike announced is 1.5 times more than the production cost.

The hike in MSP comes despite the government grappling with massive rice surpluses but it is significant ahead of elections in states like Haryana, Maharashtra, Jharkhand and Delhi, reports PTI news agency.

"Prime Minister Narendra Modi has always given preference to farmers. The first decision in the third term was taken for farmers. In today's Cabinet meeting also, a very important decision was taken for the welfare of farmers. The Kharif season is beginning and the Cabinet has approved a minimum support price of 14 crops for the season," Mr Vaishnaw said.

"In the 2018 Union Budget, the government of India had taken a clear policy decision that the MSP has to be at least 1.5 times the cost of production. Today's decision is in line with this principle. The cost has been established in a scientific manner and is based on a study by the Commission for Agricultural Costs and Prices in various districts and tehsils across the country," he added.

The MSP increase in the 14 kharif (summer) crops is the first major decision of Prime Minister Narendra Modi's third term in office and shows the government's "clear policy" to keep support prices at least 1.5 times the cost of production, Information and Broadcasting Minister Ashwini Vaishnaw said.

Paddy is the main kharif crop. Sowing of kharif crops usually begins with the onset of the southwest monsoon in June and marketing between October 2024 and September 2025.

The MSP for 'common' grade paddy has been raised by Rs 117 to Rs 2,300 per quintal, while for the 'A' grade variety, it has been hiked to Rs 2,320 per quintal for the upcoming kharif season, Vaishnaw told reporters.

Among cereals, the MSP for 'hybrid' grade jowar has been raised by Rs 191 to Rs 3,371 per quintal, while for the 'Maldani' variety, it has been hiked by Rs 196 to Rs 3,421 per quintal for the 2024-25 marketing season (October-September).

The support price for bajra has been increased by Rs 125 to Rs 2,625 per quintal, ragi by Rs 444 to Rs 4290 per quintal and maize by Rs 135 to Rs 2,225 per quintal for 2024-25.

To reduce the country's dependence on import of pulses, the MSP for tur has been raised by Rs 550 to Rs 7,550 per quintal, for urad by Rs 450 to Rs 7,400 per quintal and for moong by Rs 124 to Rs 8,682 per quintal for 2024-25 kharif marketing season.

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