Cabinet raises MSP for six rabi crops for marketing season 2024-25

As per Third Advance Estimates for 2022-23, total foodgrain production in the country is estimated at record 330.5 million tonnes, which is higher by 14.9 million tonnes compared to the previous year 2021-22

The Union cabinet on October 18 raised the Minimum Support Price (MSP) for six rabi or winter crops for marketing season 2024-25. The hike in MSPs ranged between 7-2 percent.

The prices for wheat saw a maximum increase of 7 percent with MSP assured at Rs 2,275 per quintal up from Rs 2,125 offered in the last rabi marketing season.

Masur followed the increase by 7 percent as well, MSP of which was raised from Rs 6,000 to Rs 6,425 this year.

Other crops that saw an MSP hike included barley, gram, mustard and safflower.

The MSP prices for barley will stand at Rs 1,850 per quintal up by Rs 115 from last year, MSP for gram has been hiked to Rs 5,440 per quintal, up by Rs 105 from last year, MSP for mustard is fixed at Rs 5,650 per quintal, up by Rs 200 from last year, and MSP for safflower has been fixed at Rs 5880, which was Rs 5,650 last year.

In absolute numbers, the highest increase in MSP has been approved for lentil (masur) at Rs 425 per quintal followed by rapeseed and mustard at Rs 200 per quintal. For wheat and safflower, an increase of Rs 150 per quintal each has been approved. The MSP for barley and gram has seen an increase of Rs 115 per quintal and Rs 105 per quintal, respectively.

“The increase in MSP for mandated rabi crops for marketing season 2024-25 is in line with the Union Budget 2018-19 announcement of fixing the MSP at a level of at least 1.5 times the All-India weighted average cost of production,” a statement by the Ministry of Agriculture read.

This increased MSP of rabi crops will ensure remunerative prices to the farmers and incentivise crop diversification, it added.

The expected margin over the All-India weighted average Cost of Production is 102 percent for wheat, followed by 98 percent for rapeseed and mustard, 89 per cent for lentil; 60 per cent for gram, 60 percent for barley and 52 percent for safflower.

As per Third Advance Estimates for 2022-23, total foodgrain production in the country is estimated at record 330.5 million tonnes, which is higher by 14.9 million tonnes compared to the previous year 2021-22.