In a significant move ahead of the upcoming Lok Sabha and state assembly elections, the union cabinet, in its meeting held on Wednesday, agreed to a 2-7% increase in the minimum support price (MSP) for six crops, aiming to ensure fair compensation for farmers and address their concerns. The decision, a crucial one for the farming community, comes at a time when elections loom large, and the government is looking to address the pressing issues faced by farmers.
The government had been considering a hike in the MSP for six rabi or winter crops for the 2024-25 marketing season. This move is part of a broader strategy to support farmers and boost their income during the rabi season, which contributes significantly to India’s total foodgrain output. The MSP serves as a safety net for farmers, assuring them a minimum income regardless of market prices. It plays a pivotal role in promoting food security by encouraging the cultivation of specific crops, thereby stabilizing the prices of essential staples such as wheat, rice, and pulses. The cabinet committee, responsible for approving MSPs, convenes twice a year, once for kharif crops in June and again for rabi crops in October.
Among the crops receiving a boost in MSP, wheat and masoor dal emerged as the major beneficiaries with a substantial 7% increase. This move is expected to provide much-needed relief to wheat and masoor dal growers, addressing their concerns and contributing to their economic well-being. The MSP for wheat, a crucial cereal in India, has been raised to ₹2,275 per quintal from ₹2,125 in the previous season, providing a significant uplift for wheat farmers. Similarly, masoor dal, an essential pulse crop, witnessed a substantial hike, with the MSP increasing to ₹6,425 per quintal from ₹6,000 in the previous season. Barley, a staple cereal, experienced a 6.6% hike, with its MSP rising to ₹1,850 per quintal from ₹1,735 in the previous season. Chana, a pulse crop, witnessed a 2% increase, with the MSP going up to ₹5,440 per quintal from ₹5,335.The MSPs for oilseed crops, including rapeseed & mustard oilseed and safflower oilseed, were also raised to ₹5,650 and ₹5,800 per quintal, respectively, for the 2023-24 marketing season.
The decision to set MSPs at a minimum of 1.5 times the overall average cost of production across India, as outlined in the Union Budget 2018-19, reflects the government’s intent to ensure fair compensation for farmers and encourage sustainable agricultural practices. Increasing the Minimum Support Prices (MSPs) is a big step forward in the government’s ongoing work to help farmers overcome challenges, boost their earnings, and strengthen the foundation of agriculture in the country.
