India cabinet raises minimum support price for all kharif crops for marketing season 2023-24

The prices for sesamum rose by 10.3 percent to Rs 8,635 per quintal, whereas groundnut saw a hike of 9 percent to Rs 6,357 per quintal.

Support prices for cotton (medium staple) rose by 8.9 percent to Rs 6,620 per quintal and of cotton (long staple) by 10 percent to Rs 7,020 per quintal.

“The move has been taken to ensure remunerative prices to growers for their produce. This is the largest raise in past several years in MSP,” Union Minister Piyush Goyal said while addressing a press briefing at New Delhi.

Other crops which too saw price hikes included Jowar, Bajra, Ragi, Maize, tur, sunflower seed and soybean.

Schemes like Kisan Credit Card, PM Samman Nidhi yojana, subsidies for fertilizers, availability of good seeds, electricity availability as well as focus on irrigation have all helped India move forward in agriculture, the minister insisted.

“The government is ensuring MSP prices stand above 50 percent of the input costs of a farmer. The increase this year is highest as compared with hikes of past several years,” Goyal added.

Farmers will benefit from the increase in the MSP at a time when the retail inflation is on a declining trend, he said.

The increase in MSP for Kharif Crops for Marketing Season 2023-24 is in line with the Union Budget 2018-19 announcement of fixing the MSP at a level of at least 1.5 times of the All-India weighted average cost of production, aiming at reasonably fair remuneration for the farmers, a press statement by the Ministry of Agriculture said.

The expected margin to farmers over their cost of production are estimated to be highest in case of bajra (82 percent) followed by tur (58 percent), soybean (52 percent) and urad (51 percent). For rest of the crops, margin to farmers over their cost of production is estimated to be at least 50 percent, as per data provided by the ministry.

Paddy is the main kharif crop, the sowing of which has already begun. The MSP for both Paddy (common) which was Rs 2040 per quintal and Paddy (Grade A) which was Rs 2060 per quintal has increased by Rs 143. MSP for both varieties of paddy had been raised by Rs 100 last year.

Stressing on the importance of fertilizer subsidies and its benefit to the farmers, Goyal said that in spite of the global increase in prices of fertilizers, subsidies have helped farmers earn profits over their produce. “Even as fertilizer prices spiraled out of control with major shortages across the globe, India ensured they were made available at reasonable prices and in ample quantity which has helped India achieve a high foodgrain output,” he said.

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 as compared to the previous year 2021-22.

State elections are scheduled to be held later this year in Rajasthan, Madhya Pradesh, Chhattisgarh and Rajasthan this year, along with the general elections due early next year.