Government hikes MSP of crops by 5-10%
Union Minister Piyush Goyal said the hike in the minimum support price of kharif crops for FY24 is the highest-ever increase announced by the government
The government increased the Minimum Support Price (MSP) of all kharif crops by 5-10 percent. The increase for urad dal is the lowest at 5.3 percent while moong and cotton are around 10 percent. This increase in the MSP for FY24 is in line with the government’s aim of providing fair remuneration for farmers. MSP is the price at which the government procures grains from farmers.
According to economists, the expected margin to farmers would be highest for bajra at 82 percent, tur at 58 percent, and soyabean at 52 percent. For most crops, the margin to farmers is likely to be at least 50 percent. This spells good news for the rural economy, which has been a sore point in recent quarters. However, this will add to benchmark market prices at a time when inflation is already high.
Sabnavis explains that jowar, bajra, and maize have seen inflation of 13-15 percent and in case of a crop failure in any region of the country can stoke the possibility of higher prices of these crops. The government is likely to procure stocks of tur dal at a time when market prices have been increasing. Union Minister Piyush Goyal said the hike in MSP of crops for FY24 is the highest-ever increase announced by the Cabinet.
Hike in MSP
Rs/qtl except for cotton
Products | FY23 | FY24 | Increase % |
---|---|---|---|
Paddy-Grade A^ | 2,060 | 2,203 | 6.9 |
Jowar-Hybrid | 2,970 | 3,180 | 7.1 |
Jowar-Maldandi^ | 2,990 | 3,225 | 7.9 |
Bajra | 2,350 | 2,500 | 6.4 |
Ragi | 3,578 | 3,846 | 7.5 |
Maize | 1,962 | 2,090 | 6.5 |
Tur/Arhar | 6,600 | 7,000 | 6.1 |
Moong | 7,755 | 8,558 | 10.4 |
Urad | 6,600 | 6,950 | 5.3 |
Groundnut | 5,850 | 6,377 | 9.0 |
Sunflower Seed | 6,400 | 6,760 | 5.6 |
Soybean (Yellow) | 4,300 | 4,600 | 7.0 |
Sesamum | 7,830 | 8,635 | 10.3 |
Nigerseed | 7,287 | 7,734 | 6.1 |
Cotton (Medium Staple) | 6,080 | 6,620 | 8.9 |
Cotton (Long Staple) ^ | 6,380 | 7,020 | 10.0 |
Last Updated :
June 07, 23 06:47:04 PM IST