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Empowering Indian Farmers: MSP Hike Boosts Agriculture

Writer's picture: Dhriti MukherjeeDhriti Mukherjee

Updated: Sep 24, 2024

Being the most populous country in the world, India is currently facing challenges in ensuring an adequate food supply for its vast population. The import of pulses and oilseeds has surged to unprecedented levels, given their significance as staple foods in Indian households. Therefore, it is crucial to prioritize achieving self-sufficiency. The decision to increase the minimum support price (MSP) for these crops is praiseworthy, as it is designed to encourage and support farmers in cultivating these vital crops for the Indian population. Let's explore the measures taken by our Government to enhance the production of cereals, pulses, oilseeds, and cotton.


The Union Cabinet, led by Prime Minister Narendra Modi, approved an increase in the minimum support prices (MSP) for all 14 kharif crops for the 2024-25 crop season, running from July to June. This increase will ensure that farmers receive approximately ₹2 trillion as MSP, which is ₹35,000 crore more than the previous season, according to Union Railways Minister Ashwini Vaishnaw. During the cabinet briefing, Vaishnaw emphasised that this MSP hike aligns with PM Modi's vision for his third term, aiming to support farmers and enhance their income.


The most significant increases were seen in oilseeds, with Nigerseed and Sesamum seeing hikes of ₹983 and ₹632, setting their prices at ₹8,717 and ₹9,267 per quintal, respectively. Pulses, such as Tur or Arhar (pigeon pea), also saw substantial increases, with MSP rising by about ₹550 from last year to ₹7,550 per quintal. The government has set a goal to achieve self-sufficiency in Pulses by 2027.


For paddy, the main kharif crop, the MSP has been raised by ₹117 to ₹2,300 per quintal for the ‘common’ grade variety and to ₹2,320 for grade A. Other major cereals, including Jowar, Bajra, Ragi, and Maize, have seen their MSPs increase to ₹3,371-3,421, ₹2,625, ₹4,290, and ₹2,225 per quintal, respectively, from last season's ₹3,180-3,225, ₹2,500, ₹3,846, and ₹2,090 per quintal.


For Pulses and Oilseeds, the increase in MSP ranges from ₹124 to ₹983 compared to last year. The MSP for Moong (green gram) and Urad (black gram) has been set at ₹8,682 and ₹7,400 per quintal, an increase of ₹124 and ₹450 from the 2023-24 kharif season. In the oilseeds category, Groundnut, Sunflower seed, and Yellow Soybean saw increases of ₹406, ₹520, and ₹292, setting their MSPs at ₹6,783, ₹7,280, and ₹4,882 per quintal.


For Cotton, an important cash crop, the MSP was fixed at ₹7,121 for the medium staple variety and ₹7,521 for the long staple variety, both seeing an increase of ₹501.


This MSP increase aligns with the announcement of the 2018-19 Union Budget to set MSP at a minimum of 1.5 times the average cost of production. The expected margin for farmers over their production costs is highest for Bajra (77%), followed by Tur (59%), Maize (54%), and Urad (52%). For the remaining crops, the margin is estimated to be 50%, according to an official statement.


Empowering Indian Farmers: MSP Hike Boosts Agriculture

I hope you have read the information about the MSP announced by the Government.

What is your opinion?

  1. Is there a possibility of an increase in the production level of the crops mentioned above?

  2. Will the farmers be persuaded to increase their cultivation area in order to grow more Nigarseed and Sesame Seed?

  3. Will the Government be able to purchase in a timely manner to ensure that farmers are not forced to sell their produce to corporations below the Minimum Support Price (MSP)?

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