Centre raises MSP for paddy & other Kharif crops for 2023-24 season

The Cabinet Committee on Economic Affairs (CCEA) approved the proposal to increase the Minimum Support Prices (MSP) of all mandated Kharif crops for marketing season 2023-24.

The CCEA meeting was chaired by Prime Minister Narendra Modi.

As per a press release, the Centre has increased the MSP of Kharif crops for 2023-24, in order to ensure remunerative prices to the growers for their produce and to encourage crop diversification.

As per the fresh mandate, the MSP of Paddy (Common) has been raised by Rs 143 to Rs 2183 per quintal for 2023-24. Similarly, the MSP of Paddy (Grade A) has been raised by Rs 143 to Rs 2203 per quintal.

Earlier in 2022-23, the MSP for paddy (common) and paddy (Grade A) were Rs 2040 and Rs 2060 per quintal respectively.

The increase in MSP is in line with the Union Budget 2018-19 announcement to fix the MSP at a level of at least 1.5 times of the all-India weighted average cost of production, aiming at reasonably fair remuneration for the farmers. The expected margin to farmers over their cost of production is estimated to be highest in the case of bajra (82%) followed by tur dal (58%), soybean (52%) and urad (51%). For the rest of the crops, the margin to farmers over their cost of production is estimated to be at least 50%.

In the recent years, Centre has been promoting cultivation of crops, other than cereals such as pulses, oilseeds, and nutri-cereals, by offering a higher MSP. Additionally, the government has also launched various schemes and initiatives, such as the Rashtriya Krishi Vikas Yojana (RKVY), and the National Food Security Mission (NFSM), to encourage farmers to diversify their crops.

As per the 3rd Advance Estimates for 2022-23, total foodgrain production in the country is estimated at a record 330.5 million tonnes which is higher by 14.9 million tonnes as compared to the previous year 2021-22. This is the highest increase in the last 5 years.