In the approved Minimum Support Prices (MSP) document released by the cabinet, the highest absolute increase in MSP over the previous year was recommended for oilseeds and pulses namely nigerseed which is now Rs 983 per quintal, followed by sesamum which is Rs 632 per quintal and tur or arhar which is Rs 550 per quintal.
The Union Cabinet chaired by Prime Minister Narendra Modi approved the increase in the MSP for all mandated kharif crops for marketing season 2024-25, to ensure remunerative prices to the growers for their produce.
In line with the Union Budget 2018-19, the increase in MSP for kharif crops is fixing the MSP at a level of at least 1.5 times of the All-India weighted average cost of production.
The expected margin to farmers over their cost of production are estimated to be highest in case of bajra at 77 per cent, followed by tur with 59 per cent, maize with 54 per cent and urad with 52 per cent. For the rest of the crops, the margin to farmers over their cost of production is estimated to be at 50 per cent.
The cost took account of all paid out costs such as those incurred from hired human labour, bullock labour or machine labour, rent for leased land, expenses for material inputs like seeds, fertilisers, manures, irrigation charges, depreciation on implements and farm buildings, interest on working capital, diesel or electricity for operation of pump sets etc., miscellaneous expenses and imputed value of family labour.
By offering a higher MSP for crops like pulses and oilseeds and Nutri-cereals or Shree Anna, the Government is promoting the cultivation of crops other than cereals.
14 crops covered under Kharif Marketing Season during the period 2003-04 to 2013-14 increased the minimum absolute price in MSP to Rs 745 per quintal for bajra and maximum absolute to 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.
The procurement of 14 crops covered under the Kharif Marketing Season during the period 2004-05 to 2013-14 was 4,675.98 Lakhs Metric Ton (LMT) while it was 7,108.65 LMT during the period 2014-15 to 2023-24.
The third advance estimates of production for 2023-24 showed the total foodgrain production in the country estimated at 3288.6 LMT and oilseeds production touching 395.9 LMT. In this period, kharif production of rice was estimated at 1143.7 LMT, pulses at 68.6 LMT, oilseeds at 241.2 LMT, nutri-cereals or Shree Anna at 130.3 LMT and cotton at 325.2 lakh bales.
