Government Approves MSP for Kharif Crops for Marketing Season 2024-25; Explore Rates Across Various Crops

The Union Cabinet, led by Prime Minister Narendra Modi, has approved an increase in the Minimum Support Prices (MSP) for all mandated Kharif crops for the 2024-25 marketing season. This decision aims to ensure that growers receive remunerative prices for their produce. The highest absolute increases in MSP over the previous year have been recommended for oilseeds and pulses, with niger seed seeing an increase of Rs. 983 per quintal, followed by sesamum at Rs. 632 per quintal, and tur/arhar at Rs. 550 per quintal.

Minimum Support Prices for All Kharif Crops for Marketing Season 2024-25

The increase in the Minimum Support Price (MSP) for Kharif Crops for the Marketing Season 2024-25 aligns with the Union Budget 2018-19 announcement of setting the MSP at a minimum of 1.5 times the all-India weighted average cost of production. The expected profit margin for farmers over their cost of production is estimated to be highest for bajra (77%), followed by tur (59%), maize (54%), and urad (52%). For the remaining crops, the margin is estimated to be 50%.

In recent years, the government has been encouraging the cultivation of crops other than cereals, such as pulses, oilseeds, and Nutri-cereals/Shree Anna, by offering a higher MSP for these crops. Between 2003-04 and 2013-14, for 14 crops covered under the Kharif Marketing Season, the minimum absolute increase in MSP was ₹745 per quintal for bajra, and the maximum was Rs 3,130 per quintal for moong. During the period 2013-14 to 2023-24, the minimum absolute increase in MSP was Rs.780/- per quintal for Maize and maximum absolute increase was Rs.4,234/- per quintal for Nigerseed. Details are at Annexure-I.

During the period 2004-05 to 2013-14, the procurement of 14 crops covered under Kharif Marketing Season was 4,675.98 Lakhs Metric Ton (LMT) while during the period 2014-15 to 2023-24, procurement of these crops was 7,108.65 LMT. The year-wise details are at Annexure-II.

As per the 3rd Advance Estimates of production for 2023-24, total foodgrain production in the country is estimated at 3288.6 Lakhs Metric Ton (LMT), and oilseeds production is touching 395.9 LMT. During 2023-24, kharif production of rice, pulses, oilseeds and nutri-cereals/Shree Anna and cotton is estimated to be 1143.7 LMT, 68.6 LMT, 241.2 LMT, 130.3 LMT and 325.2 Lakh bales, respectively.

Annexure-I: Rs.per quintal

Annexure-II

Procurement of Kharif Crops 2004-05 to 2013-14 and 2014-15 to 2023-24

In LMT

(Source: PIB)