Cabinet approves 2-7% MSP increase for six crops for 2024-25 marketing season

Aditya Raj Das

Government has approved Minimum Support Prices (MSP) for six Rabi Crops for Marketing Season 2024-25. Briefing media in New Delhi after the Cabinet meeting, Information and Broadcasting Minister Anurag Singh Thakur said, the highest increase of 425 rupees per quintal has been approved for lentil (masur) followed by increase of 200 rupees per quintal each for rapeseed and mustard.

He said, an increase of 150 rupees per quintal each has been approved for wheat and safflower. Mr Thakur said, the Cabinet has also approved increase of 115 rupees per quintal for barley and 105 rupees per quintal for gram.

Mr Thakur said, 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. He said, the Government is promoting crop diversification towards oilseeds, pulses and millets to enhance food security, increase farmers’ income, and reduce dependence on imports.

MSP serves as a crucial safety net for farmers by guaranteeing them a minimum income, regardless of market prices. It also helps ensure food security by encouraging farmers to cultivate certain crops, helping stabilise prices of staples such as wheat, rice and pulses.

Wheat and masoor saw the biggest increase (7%), followed by barley (6.6%), mustard & rapeseed (3.6%), safflower (2.6%) and chana (2%).

The cabinet committee increased the MSP for wheat and masoor to ₹2,275 a quintal from ₹2,125 last season and to ₹6,425 a quintal from ₹6,000 last season, respectively.

Barley’s MSP has been hiked to ₹1,850 from ₹1,735 a quintal last season while chana’s MSP has been raised to ₹5,440 from ₹5,335. In the case of oilseed crops, the government hiked the MSP for rapeseed & mustard oilseed and safflower oilseed to ₹5,650 a quintal from ₹5,450 and ₹5,800 a quintal from ₹5,650 in the 2023-24 marketing season (October-March).

The rabi season contributes almost half of India’s total foodgrain output. The cabinet committee approves the MSP for kharif crops in June and rabi crops in October, based on the recommendations of the Commission for Agricultural Costs and Prices (CACP).