Union Cabinet Approves 2-7% MSP Hike for Six Crops Ahead of Elections

Union Cabinet Approves 2-7% MSP Hike for Six Crops Ahead of Elections

VoM News Desk | October 18, 2023 | 07:06 PM IST | Breaking News | Follow on Google News

Union Cabinet Approves 2-7% MSP Hike for Six Crops Ahead of Elections

Union Cabinet Approves 2-7% MSP Hike for Six Crops Ahead of Elections

In anticipation of upcoming Lok Sabha and state assembly elections, the Union Cabinet has given the green light for a 2-7% increase in the Minimum Support Price (MSP) for six key crops. The decision aims to ensure that farmers receive a fair price for their produce and further strengthens the government’s commitment to rural and agricultural welfare.

The move follows a report in Mint from September 17, suggesting that the government was considering raising the MSP for six rabi (winter) crops in preparation for the 2024-25 marketing season. Among these crops, wheat and masoor dal are expected to witness the most significant increases, serving as a strategic move with high-stakes elections on the horizon.

The Significance of MSP

MSP is a vital safety net for farmers, offering them a guaranteed minimum income, independent of market prices. It plays a crucial role in ensuring food security by incentivizing the cultivation of specific crops, thereby stabilizing prices for staples such as wheat, rice, and pulses.

Crop-Specific MSP Increases

The MSP adjustments are as follows:

• Wheat and masoor dal will see a substantial 7% increase.
• Barley will experience a 6.6% hike.
• Mustard & rapeseed will have a 3.6% increase.
• Safflower MSP will be raised by 2.6%.
• Chana’s MSP will increase by 2%.

The cabinet committee raised the MSP for wheat to ₹2,275 per quintal from ₹2,125 in the previous season. Similarly, masoor dal’s MSP will increase to ₹6,425 per quintal from ₹6,000 last season. Barley’s MSP has been elevated to ₹1,850 per quintal from ₹1,735, while chana’s MSP will see a hike to ₹5,440 from ₹5,335.

In the case of oilseed crops, the government increased the MSP for rapeseed & mustard oilseed and safflower oilseed to ₹5,650 per quintal from ₹5,450 and ₹5,800 per quintal from ₹5,650 in the 2023-24 marketing season, covering the period from October to March.

Promoting Food Security

It’s important to note that the rabi season contributes significantly to India’s total foodgrain output. The Cabinet Committee, based on the recommendations of the Commission for Agricultural Costs and Prices (CACP), approves the MSP for kharif crops in June and rabi crops in October. This decision follows the commitment outlined in Union Budget 2018-19 to set MSPs at least 1.5 times the all-India weighted average cost of production, ensuring equitable compensation for farmers.

VoM News Desk

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