Government likely to hike MSP for pulses, oilseeds amid production concerns: Report

This move comes shortly after Prime Minister Narendra Modi announced the 17th instalment of the PM Kisan Samman Nidhi scheme

In a bid to bolster pulse production across the country, the government is contemplating increasing the Minimum Support Prices (MSP) for urad and tur dal by up to 10 percent, according to a report by CNBC Awaaz.

Additionally, soybean and sunflower oil may see MSP hikes ranging from 5 percent to 7 percent. These proposals are expected to be deliberated upon and potentially approved during the Cabinet meeting scheduled for June 19.

This move comes shortly after Prime Minister Narendra Modi announced the 17th instalment of the PM Kisan Samman Nidhi scheme, under which eligible farmers are set to receive a direct transfer of Rs 2,000 each, amounting to a total disbursal of Rs 20,000 crore.

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The report highlights concerns over low tur and urad dal production as driving factors behind the proposed MSP revisions. Furthermore, there could be a 4 percent to 5 percent increase in paddy prices this year.

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The government annually fixes the MSP for 23 crops based on recommendations from the Commission for Agricultural Costs and Prices (CACP), operating under the Ministry of Agriculture and Farmers Welfare. These recommendations encompass 23 crops, including cereals, pulses, oilseeds, and commercial crops such as cotton and sugarcane.