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

The Union Cabinet, led by PM Modi, has approved substantial increases in MSP for Kharif crops for the 2024-25 season, particularly benefiting oilseeds and pulses.

KJ Staff
A Farmer working in field (Photo Source: Pexels)
A Farmer working in field (Photo Source: Pexels)

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

Crops

MSP
2024-25(Rs. per quintal)

Cost KMS
2024-25

Margin over
cost (%)

MSP
2023-24

MSP Increase
in 2024-25
over 2023-24

Cereals

 

 

 

 

 

Paddy

Common

2300

1533

50

2183

117

Grade A^

2320

-

-

2203

117

Jowar

Hybrid

3371

2247

50

3180

191

Maldandi"

3421

-

-

3225

196

Bajra

2625

1485

77

2500

125

Ragi

4290

2860

50

3846

444

Maize

2225

1447

54

2090

135

Pulses

 

 

 

 

 

Tur /Arhar

7550

4761

59

7000

550

Moong

8682

5788

50

8558

124

Crops

MSP
2024-25

Cost* KMS
2024-25

Margin over
cost (%)

MSP
2023-24

MSP Increase
in 2024-25
over 2023-24

 

 

 

 

 

 

Urad

7400

4883

52

6950

450

 

Oilseeds

 

 

 

 

 

 

Groundnut

6783

4522

50

6377

406

 

Sunflower Seed

7280

4853

50

6760

520

 

Soybean (Yellow)

4892

3261

50

4600

292

 

Sesamum

9267

6178

50

8635

632

 

Nigerseed

8717

5811

50

7734

983

 

Commercial

 

 

 

 

 

 

Cotton

(Medium Staple)

7121

4747

50

6620

501

 

(Long Stapler

7521

-

-

7020

501

 

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

Crops

MSP
2003-04

MSP
2013-14

MSP
2023-24

.                      .

Increase in
MSP in
2013-14
over 2003-
04

.                .

Increase in

MSP in
over 2023-24 over
2013-14

Cereals

A

B

C

D=B-A

E=C-B

Paddy

Common

550

1310

2183

760

873

Grade A^

580

1345

2203

765

858

Jowar

Hybrid

505

1500

3180

995

1680

MaldandiA

-

1520

3225

 

1705

Bajra

505

1250

2500

745

1250

Ragi

505

1500

3846

995

2346

Maize

505

1310

2090

805

780

Pulses

 

 

 

 

 

Tur /Arhar

1360

4300

7000

2940

2700

Moong

1370

4500

8558

3130

4058

Urad

1370

4300

6950

2930

2650

Oilseeds

 

 

 

 

 

Groundnut

1400

4000

6377

2600

2377

Sunflower Seed

1250

3700

6760

2450

3060

Soybean (Yellow)

930

2560

4600

1630

2040

Sesamum

1485

4500

8635

3015

4135

Nigerseed

1155

3500

7734

2345

4234

 

 

Commercial

 

 

 

Cotton

(Medium

Staple)

1725

3700

6620

1975

2920

(Long Staple)"

1925

4000

7020

2075

3020

Annexure-II

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

In LMT

Crops

2004-05 to 2013-14

2014-15 to 2023-24

Cereals

A

B

Paddy

4,590.39

6,914.98

Jowar

1.92

5.64

Bajra

5.97

14.09

Ragi

0.92

21.31

Maize

36.94

8.20

Pulses

 

 

Tur /Arhar

0.60

19.55

Moong

0.00

1

Urad

0.86

8.75

Oilseeds

 

 

Groundnut

3.45

32.28

Sunflower Seed

0.28

 

Soybean (Yellow)

0.01

1.10

Sesamum

0.05

0.03

Nigerseed

0.00

0.00

Commercial

 

 

Cotton

34.59

 

63.41

Total

4,675.98

7,108.65

(Source: PIB)

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