The Cabinet Committee on Economic Affairs, led by Prime Minister Narendra Modi, has approved an increase in the Minimum Support Prices (MSP) for Rabi Crops for the Marketing Season 2024-25. This decision aims to ensure fair prices for farmers and encourage crop diversification.
Why MSP Matters
- Minimum Support Prices are the guaranteed prices that the government offers to farmers for their crops.
- These prices act as a safety net, ensuring that farmers receive a reasonable income for their produce.
Wheat: The MSP for wheat has increased by Rs. 150 per quintal, reaching Rs. 2275 per quintal for the 2024-25 season. This provides a 102% margin over the cost of production.
- Barley: Barley’s MSP has risen by Rs. 115 per quintal, reaching Rs. 1850 per quintal, with a 60% margin over the cost of production.
- Gram: The MSP for gram has gone up by Rs. 105 per quintal, now at Rs. 5440 per quintal, with a 60% margin over the cost of production.
- Lentil (Masur): Lentil sees the highest increase, with the MSP going up by Rs. 425 per quintal, reaching Rs. 6425 per quintal. This offers an impressive 89% margin over the cost of production.
- Rapeseed & Mustard: The MSP for rapeseed and mustard has been increased by Rs. 200 per quintal, reaching Rs. 5650 per quintal, with a 98% margin over the cost of production.
Safflower: Safflower’s MSP has risen by Rs. 150 per quintal, reaching Rs. 5800 per quintal, with a 52% margin over the cost of production.
Table: Minimum Support Prices for Rabi Crops in 2024-25
|S.No||Crops||MSP RMS 2024-25||Cost of Production RMS 2024-25||Increase in MSP (Absolute)||Margin over Cost (in %)|
|1||Wheat||Rs. 2275||Rs. 1128||Rs. 150||102%|
|2||Barley||Rs. 1850||Rs. 1158||Rs. 115||60%|
|3||Gram||Rs. 5440||Rs. 3400||Rs. 105||60%|
|4||Lentil (Masur)||Rs. 6425||Rs. 3405||Rs. 425||89%|
|5||Rapeseed||& Mustard||Rs. 5650||Rs. 2855||Rs. 200|
|6||Safflower||Rs. 5800||Rs. 3807||Rs. 150||52%|
Importance of the MSP Increase
- This increase aligns with the government’s commitment to setting MSP at a level of at least 1.5 times the cost of production.
- It provides financial support to farmers, making their produce more profitable.
- Encourages crop diversification, reducing reliance on imports and improving food security.
Promoting Crop Diversification
- The government is actively promoting the cultivation of oilseeds, pulses, and millets to enhance food security, boost farmers’ income, and reduce dependence on imported goods.
- The government has undertaken initiatives like the National Food Security Mission (NFSM), Pradhan Mantri Krishi Sinchayee Yojana (PMKSY), and the National Mission on Oilseeds and Oil Palm (NMOOP) to support farmers.
- To expand the benefits of the Kisan Credit Card (KCC) Scheme, the government has launched the Kisan Rin Portal (KRP), KCC Ghar Ghar Abhiyaan, and Weather Information Network Data Systems (WINDS).
- These initiatives provide timely and accurate weather information to empower farmers in making informed decisions about their crops.