Govt Hikes Paddy MSP By Rs 117 To Rs 2,300 Per Quintal For 2024-25, Approves MSP For Total 14 Kharif Crops

The Union Cabinet has approved MSP for 14 Kharif crops, including paddy and cotton, with a financial implication of Rs 2 lakh crore.

Representative Photo | Information and Broadcasting Minister Ashwini Vaishnaw said that the MSP hike would provide an additional Rs 35,000 crore to farmers over the previous year.

Source : PTI

In a significant move ahead of crucial state assembly polls, the Indian government on Wednesday announced an increase in the minimum support price (MSP) for paddy by 5.35 per cent to Rs 2,300 per quintal for the 2024-25 kharif marketing season. This decision, a key indicator of the government's support for the agricultural sector, is seen as pivotal ahead of elections in Haryana, Maharashtra, Jharkhand, and Delhi.

Despite managing a substantial surplus of rice, the government approved a Rs 117 per quintal hike in paddy support price. Information and Broadcasting Minister Ashwini Vaishnaw highlighted this increase as a demonstration of the government's "clear policy" to maintain support prices at least 1.5 times the cost of production. "This is the first major decision of Prime Minister Narendra Modi's third term in office," Vaishnaw said.

Paddy, the main kharif crop, is sown with the onset of the southwest monsoon in June, with marketing occurring between October 2024 and September 2025. Announcing the MSP increase, Vaishnaw stated that the Cabinet had approved the MSPs for 14 kharif crops based on recommendations from the Commission for Agricultural Costs and Prices (CACP).

Farmers To Receive Around Rs 2 Lakh Crore As MSP, Rs 35,000 Crore More Than Previous Season: Ashwini Vaishnaw

The total financial implication from the MSP hike is estimated at Rs 2,00,000 crore, approximately Rs 35,000 crore higher than the previous season, significantly boosting farmers' income. The MSP for 'common' grade paddy has been raised to Rs 2,300 per quintal, while the 'A' grade variety has been increased to Rs 2,320 per quintal.

“The two terms of the Modi government have laid a strong foundation for economic growth, and significant decisions will be taken in the third term for the benefit of people,” Vaishnaw stated. “The Cabinet has approved Minimum Support Price (MSP) on 14 Kharif season crops including paddy, ragi, bajra, jowar, maize, and cotton. With today's decision, the farmers will receive around Rs 2 lakh crore as MSP, which is Rs 35,000 crore more than the previous season.” 

#WATCH | On Union Cabinet decision on MSP for Kharif season crops, Information & Broadcasting Minister Ashwini Vaishnaw says, "With today's decision, the farmers will get around Rs 2 lakh crores as MSP. This is Rs 35,000 crores more than the previous season." pic.twitter.com/cUjJIqpzJ1

— ANI (@ANI) June 19, 2024

Among cereals, the MSP for 'hybrid' grade jowar has been raised by Rs 191 to Rs 3,371 per quintal, while for the 'Maldani' variety, it has been hiked by Rs 196 to Rs 3,421 per quintal. The support price for bajra has been increased by Rs 125 to Rs 2,625 per quintal, ragi by Rs 444 to Rs 4,290 per quintal, and maize by Rs 135 to Rs 2,225 per quintal for the 2024-25 season.

To reduce dependence on imported pulses, the MSP for tur has been raised by Rs 550 to Rs 7,550 per quintal, urad by Rs 450 to Rs 7,400 per quintal, and moong by Rs 124 to Rs 8,682 per quintal. The support price for sunflower seed has been raised by Rs 520 to Rs 7,280 per quintal, groundnut by Rs 406 to Rs 6,783 per quintal, and soybean (yellow) by Rs 292 to Rs 4,892 per quintal.

Additionally, the MSP for sesamum has increased by Rs 632 to Rs 9,267 per quintal, and for nigerseed by Rs 983 to Rs 8,717 per quintal. For commercial crops, the MSP for cotton has been raised by Rs 501 to Rs 7,121 per quintal for 'medium staple' and Rs 7,521 per quintal for the 'long staple' variety.

Vaishnaw emphasised the government's holistic approach from "Beej se bazaar tak (from seed to market)," addressing farmers' concerns comprehensively. "In the first two terms, the government created a strong base for the economy and farmers' welfare. On that strong base, we can take a good leap. There is a continuity in policy keeping focus on farmers," he added.

The government estimates the highest expected margin to farmers over their cost of production in the case of bajra (77 per cent), followed by tur (59 per cent), maize (54 per cent), and urad (52 per cent). For the rest of the crops, the margin is estimated to be 50 per cent.

Currently, the Food Corporation of India holds a record stockpile of around 53.4 million tonnes of rice, which is four times the required buffer and sufficient to meet demand under welfare schemes for one year without fresh procurement. Despite lower rainfall of around 20 per cent across the country since the start of the monsoon season on June 1, weather conditions are now favourable for further advancement of the monsoon, according to the meteorological department.