Ahead of elections, govt raises MSP for Rabi crops, MSP of wheat raised by Rs 150 a quintal to Rs 2,275

A day after the Congress promised to raise MSP of wheat and paddy in its election manifesto for Madhya Pradesh, the Centre approved the increase in the Minimum Support Prices for all mandated Rabi Crops for Marketing Season 2024-25. 

The decision to raise the MSP of Rabi Crops for Marketing Season 2024-25 was taken on Wednesday by the Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Narendra Modi, to ensure remunerative prices to the growers for their produce.

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

The Congress on Tuesday promised to purchase wheat at the minimum rate of Rs 2,600 per quintal and paddy at Rs 2,500 per quintal if voted to power in Madhya Pradesh. Ahead of the Assembly elections in certain key wheat growing states, the government Wednesday announced an increase in the minimum support price (MSP) of wheat by Rs 150 to Rs 2,275 per quintal for the 2024-25 marketing season. This is the highest increase by the Narendra Modi-led government since it came to power in 2014.

The MSP for barley has been raised by Rs 115 a quintal from Rs 1735 to Rs 1850; gram by Rs 105 from Rs 5335 to Rs 5440; lentil (masur) by Rs 425 from Rs 6000 to Rs 6425; rapeseed and mustard by Rs 200 from Rs 5450 to Rs 5650; and safflower by Rs 150 from Rs 5650 to Rs 5800, according to an official release.

The announcement comes ahead of the upcoming assembly elections in Madhya Pradesh, Chhattisgarh, Telangana, Rajasthan and Mizoram. Madhya Pradesh and Rajasthan are major wheat producer states. Currently, the MSP on wheat stands at Rs 2,125 per quintal for the 2023-24 marketing season (April-March).

Information and Broadcasting Minister Anurag Thakur told mediapersons that the CCEA has approved the increase in the MSP for all mandated rabi crops for 2024-25 marketing season. "Based on the CACP recommendation, we have increased the MSP of six rabi crops. Wheat MSP has been increased by Rs 150 per quintal," he said.

The support price of wheat has been increased to Rs 2,275 per cent quintal for 2024-25 marketing season, from Rs 2,125 per quintal in 2023-24, he said. Wheat is the main rabi (winter) crop, sowing of which begins in October, while harvesting in April. MSP is the minimum rate ensured to protect the interest of farmers and below this rate the grain is not purchased by the government procurement agencies.

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 of the All-India weighted average Cost of Production. 

The expected margin over All-India weighted average Cost of Production is 102 percent for wheat, followed by 98 percent for rapeseed & mustard; 89 per cent for lentil; 60 per cent for gram; 60 percent for barley; and 52 percent for safflower. This increased MSP of rabi crops will ensure remunerative prices to the farmers and incentivise crop diversification.  The Government is promoting crop diversification towards oilseeds, pulses and shree anna/millets to enhance food security, increase farmers' income, and reduce dependence on imports.

Besides the Price Policy, the Government has undertaken various initiatives such as the National Food Security Mission (NFSM), Pradhan Mantri Krishi Sinchayee Yojana (PMKSY), and the National Mission on Oilseeds and Oil Palm (NMOOP) with the objective to provide financial support, quality seeds to encourage farmers to cultivate oilseeds and pulses.

Moreover, to extend the benefits of the Kisan Credit Card (KCC) Scheme to every farmer across the nation, Government has launched the Kisan Rin Portal (KRP), KCC Ghar Ghar Abhiyaan, and Weather Information Network Data Systems (WINDS) with the aim to provide timely and accurate weather information to empower farmers in making timely decisions regarding their crops.

These initiatives aim to revolutionize agriculture, enhance financial inclusion, optimize data utilization, and improve the lives of farmers across the nation, the release added.