Govt raises minimum support prices for six Rabi crops

The Rabi MSP is typically set for wheat, barley, gram, lentil, mustard and safflower. (Representative image)

The central cabinet has approved a proposal to raise the minimum support prices for six Rabi, or winter-sown crops, Union minister Anurag Singh Thakur announced on October 18.

Minimum support price refers to state-set price at which government agencies procure select crops from farmers to shield them from typical price volatilities. About 23 crops are currently covered under MSP.

The Rabi MSP is typically set for wheat, barley, gram, lentil, mustard and safflower.

For the Rabi marketing season 2023-24, the government has raised the MSP for wheat by Rs 110 per quintal to Rs 2,125 per quintal.

The MSP for barley has been raised by Rs 100 to Rs 1,735 per quintal while that for gram has been hiked by Rs 105 to Rs 5,335 per quintal.

The lentil (masur) crop will get an additional MSP of Rs 500, leading to a support price of Rs 6,000 per quintal.

Rapeseed & mustard has seen an MSP hike of Rs 400 to Rs 5,450 per quintal for the season while safflower will see an increase of Rs 209 to Rs 5,650 per quintal.

The government decides the MSP based on the recommendations of the Commission for Agricultural Costs and Prices, and after considering the views of state governments and central ministries. The factors considered by CACP for fixing MSP include cost of production, domestic and international prices, demand-supply conditions, inter-crop price parity, terms of trade between agricultural and non-agricultural sectors.