Govt approves MSP for Kharif Crops for Marketing Season 2023-24

The government on Wednesday hiked the minimum support price (MSP) of paddy by Rs 143 to Rs 2,183 per quintal for the 2023-24 crop year (July-June) in order to encourage farmers to bring more area under the crop and boost their income. The Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Narendra Modi, approved the increase in MSP for all mandated Kharif (summer) crops for the 2023-24 crop year.

Briefing media, Food and Consumer Affairs Minister Piyush Goyal said: "In agriculture, we have been fixing MSP from time to time based on the recommendations of the CACP (Commission for Agricultural Costs and Prices). The increase in MSP of kharif crops for this year is highest compared to the previous years." Farmers will benefit from the increase in the MSP at a time when the retail inflation is on a declining trend, he added.

Goyal said the MSP of common grade variety of paddy has been increased by Rs 143 to Rs 2,183 per quintal for the 2023-24 crop year, from Rs 2,040 in the previous year. The support price of 'A' grade variety of paddy has been hiked by Rs 143 to Rs 2,203 per quintal from Rs 2,060, he said. Highest increase in MSP was in moong by 10.4 per cent at Rs 8,558 per quintal for 2023-24 crop year, as against Rs 7,755 per quintal in the previous year.

 Paddy is the main kharif crop, the sowing of which normally begins with the onset of southwest monsoon. The India Meteorological Department (IMD) has projected a normal monsoon for the June-September period despite the evolving El Nino conditions. The monsoon has missed its onset date of June 1 in Kerala.

 Minimum Support Prices for Kharif Marketing Season (KMS) 2023-24

(Rs. per quintal)

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, an official release said. The expected margin to farmers over their cost of production are estimated to be highest in case of bajra (82%) followed by tur (58%), soybean (52%) and urad (51%). For rest of the crops, margin to farmers over their cost of production is estimated to be at least 50%.

In the recent years, Government has been promoting the cultivation of crops, other than cereals such as pulses, oilseeds, and Nutri-cereals/ Shree Anna, by offering a higher MSP for these crops.  Additionally, government has also launched various schemes and initiatives, such as the Rashtriya Krishi Vikas Yojana (RKVY), the National Food Security Mission (NFSM), to encourage farmers to diversify their crops.

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 by14.9 million tonnes as compared to the previous year 2021-22. This is the highest increase in the last 5 year.