Cupboard approves hike in MSP of kharif crops for 2023-24

New Delhi: The Cupboard Committee on Financial Affairs (CCEA), chaired by Prime Minister Narendra Modi, on Wednesday accredited elevating minimal assist costs (MSP) of kharif crops for the 2023-24 advertising and marketing season.

The hike in MSP will “guarantee remunerative costs to the growers for his or her produce and encourage crop diversification,” Meals and Client Affairs Minister Piyush Goyal mentioned whereas briefing reporters on the choices taken by Union Cupboard.

Mint had reported in Could that the federal government was contemplating a 3-8% enhance in MSP for key kharif crops.

MSP for moong was raised probably the most amongst all 14 kharif crops to 8,558 per quintal from final 12 months’s 7,755 a quintal. After moong, the second-highest hike in MSP has been for sesame to 8,635 a quintal from 7,830 set for the 2022-23 kharif advertising and marketing season.

The MSP serves as a vital security web for farmers in India, with the federal government guaranteeing a minimal worth for his or her produce. It additionally helps guarantee meals safety and stabilizes market costs of staples. The federal government additionally makes use of the MSP to encourage farmers to domesticate sure crops.

MSP for paddy (frequent) has been mounted at 2,183 per quintal, in opposition to 2,040 per quintal within the final season, whereas the MSP for paddy (grade A) has been mounted at 2,203 per quintal, up from final 12 months’s 2,060 per quintal.

Different coarse cereals’ MSP has been hiked by 6.3-7.8%, with that of bajra mounted at 2,500, up from 2,350 per quintal mounted in 2022-23. Maize MSP has been raised to 2,090 for the 2023-24 in opposition to 1,962 a 12 months in the past.

The Centre has mounted cotton MSP at 6,620 a quintal for medium staple selection and 7,020 per quintal for lengthy staple selection. 

“The rise of 8.9% in MSP of cotton is nice information because the farmers who had withheld cotton have realised decrease costs, whereas Paddy MSP is greater than the identical in maize,” mentioned former union agriculture secretary Siraj Hussain. “It appears that there’s a realisation that maize can not actually be used for ethanol.”

The MSP of tur (arhar or pigeon pea) and urad (black gram) has been elevated by 400 to 7,000 a quintal and 350 to 6,950, respectively, for the 2023-24 kharif advertising and marketing season.

Sunflower MSP stands at 6,760 in opposition to final 12 months’s 6,400 a quintal, groundnut MSP has been mounted at 6,377 a quintal, up 527 from a yeae in the past and soybean (yellow) at 4,600 per quintal, 300 larger than the 2022-23 kharif advertising and marketing season.

“Whereas the MSP press launch offering reference price knowledge suggests the reference price is for the 2023-24 kharif season, it doesn’t appear to be the case. Price knowledge appears to be from 2020-21 price of cultivation estimates, which signifies that the MSP misses to compensate for price enhance from 2021-22 to 2023-24,” mentioned Anil Sood, a farm professional. “Price knowledge within the press releases appears near B2 price of 2020-21, which covers the paid-out prices and a few a part of the imputed price of household labour and personal land.”

“The imputed worth of labour and land are extraordinarily low and don’t present for a good price of dwelling for a farming household. It’s, subsequently, not shocking that the farming group has been struggling for years and we have now farmers giving up farming. We should hyperlink imputed values to truthful price and reference C3 prices for MSP, if we do need rural financial system to progress. 9-year CAGR in MSP means that we nearly cowl the price of basic inflation for paddy and maize farmers,” Sood added.

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Up to date: 07 Jun 2023, 06:05 PM IST