Cabinet hikes minimum support price for Kharif crops

The government on Wednesday approved an increase in the Minimum Support Price (MSP) of common grade paddy by Rs 143 to Rs 2,183 per quintal for Marketing Season 2023-24.

The decision was taken at a meeting of the Cabinet Committee on Economic Affairs (CCEA) chaired by Prime Minister Narendra Modi.

Briefing the media, Food and Civil Supplies Minister Piyush Goyal said farmers would get 7 per cent higher MSP vis-a-vis the rates fixed for last year.

This, the government said, is the second-highest MSP hike in a decade to ensure “remunerative prices to the growers for their produce and to encourage crop diversification”.

The announcement comes amid reports of El Nino conditions developing in the Pacific while the onset of monsoon in Kerala is delayed.

The paddy-sowing season in India begins with the onset of monsoon in the first week of June. The cultivation and output of kharif crops are contingent upon rainfall received during the monsoon months.

“In agriculture, we have been fixing MSP from time to time based on the recommendations of the CACP (Commission for Agriculture Costs and Prices). The increase in MSP of kharif crops this year is the highest as compared to the previous years,” Goyal said.

The MSP of the A-grade variety of paddy has also been hiked by Rs 143 to Rs 2,203 per quintal from the current Rs 2,060.

The CCEA also increased the MSP of other agricultural produce like moong dal by 10.4 per cent to Rs 8,558 per quintal, and groundnut by 9 per cent to Rs 6,357 per quintal.

Support prices for sesame have been fixed at 10.3 per cent to Rs 8,635 per quintal. The MSP for cotton (medium staple) is up by 8.9 per cent to Rs 6,620 per quintal and cotton (long staple) by 10 per cent to Rs 7,020 per quintal.