According to sources, the Minimum Support Price (MSP) for kharif crops may see an increase of 5-10%. The new government might make this decision in its first cabinet meeting, potentially raising the MSP for the 2024-25 season. Each year, the government announces the MSP for 23 crops based on the recommendations of the Commission for Agricultural Costs and Prices (CACP).
What is MSP:
The Minimum Support Price (MSP) acts as a guarantee provided to farmers by the government, ensuring that their crops will be purchased at a predetermined price. Even if market prices fall, the government buys the crops at the assured MSP. This practice began after independence when the country faced continuous droughts and food crises. To boost the production of grains and pulses, the government encouraged the use of new technologies and assured farmers that their crops would be purchased at a guaranteed minimum price.
Crops Likely to See MSP Increase:
Sources suggest that the MSP for various kharif crops for the 2024-25 season could increase by 5-10%. This includes paddy, coarse cereals, pulses, and oilseeds. The new government cabinet is expected to finalize the MSP hike for 2024-25. The MSP for paddy might see a 5% increase, while the MSP for pigeon pea (tur) and black gram (urad) could rise by 8-10%. The kharif season lasts through June-July, and the anticipated MSP increase aims to encourage higher production of these crops.
Decline in Pigeon Pea Cultivation: Reports indicate a decline in pigeon pea cultivation in Maharashtra, with farmers shifting towards soybean farming. Over the past three years, soybean yield has increased to 12 quintals per hectare, whereas pigeon pea yield remains at 7-8 quintals per hectare.
Meeting Edible Oil Demand: The production of edible oil crops has seen a 55-56% increase. For instance, the MSP for groundnut has risen by 5.21%, from ₹5,275 per quintal to ₹5,550 per quintal. The MSP for pulse crops is expected to increase by 15%.
Potential MSP Increase Details: Punjab and Haryana, farmers are increasingly cultivating pulses and oilseeds instead of paddy. The government has a substantial rice stock, which is expected to be four times the buffer stock by July 1. Expected MSP increases are: paddy by 5%, mung bean by 5%, soybean by 5%, pigeon pea by 8-10%, and black gram by 8-10%.
MSP for 23 Crops: The CACP, under the Ministry of Agriculture, recommends MSP for 23 crops. These include seven grains (maize, sorghum, pearl millet, paddy, wheat, barley, and finger millet), five pulses (mung bean, pigeon pea, chickpea, black gram, and lentil), seven oilseeds (soybean, sesame, sunflower, safflower, groundnut, rapeseed-mustard, and niger seed), and four commercial crops (cotton, copra, sugarcane, and raw jute).