Indian Economy News

Union Cabinet approves Minimum Support Prices (MSP) for Kharif Crops for Marketing Season 2023-24

The increase in the Minimum Support Prices (MSP) for all required Kharif Crops for Marketing Season 2023-24 has been approved by the Cabinet Committee on Economic Affairs (CCEA), which was presided over by Prime Minister Mr. Narendra Modi.

The government has increased the MSP of Kharif Crops for Marketing Season 2023-24 in order to guarantee farmers fair pricing for their produce and to promote crop diversification.

This is in accordance with the Union Budget 2018-19 declaration that the MSP would be set at a level of at least 1.5 times the weighted average cost of production for all of India, with the goal of providing farmers with a fairly equitable wage. Bajra is predicted to have the biggest margin for farmers over their cost of production (82%) followed by tur (58%), soybean (52%), and urad (51%). Farmer profit over production costs is predicted to reach at least 50% for the remaining harvests.

By providing a higher MSP for these crops in recent years, the government has encouraged the growth of crops other than cereals, such as pulses, oilseeds, and Nutri-cereals/Shree Anna. To encourage farmers to diversify their crops, the government has also launched a number of programmes and initiatives, including the Rashtriya Krishi Vikas Yojana (RKVY) and the National Food Security Mission (NFSM).

According to Third Advance Estimates for 2022-23, India’s overall production of foodgrains is expected to reach a record 330.5 million tonnes (MT), up 14.9 MT from 2021-22.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.