Cabinet approves MSP for Kharif Crops for Marketing Season 2024-25

Government has increased the MSP of Kharif Crops for Marketing Season 2024-25, to ensure remunerative prices to the growers for their produce. The highest absolute increase in MSP over the previous year has been recommended for oilseeds and pulses viz. nigerseed (Rs.983/- per quintal) followed by sesamum (Rs.632/- per quintal) and tur/arhar (Rs.550/- per quintal).

Minimum Support Prices for all Kharif crops for Marketing Season 2024-25

Rs. per quintal

Crops		MSP 2024-25	Cost* KMS 2024-25	Margin over cost (%)	MSP 2023-24	MSP Increase in 2024-25 over 2023-24
Cereals
Paddy	Common	2300	1533	50	2183	117
	Grade A^	2320	–	–	2203	117
Jowar	Hybrid	3371	2247	50	3180	191
	Maldandi”	3421	–	–	3225	196
Bajra		2625	1485	77	2500	125
Ragi		4290	2860	50	3846	444
Maize		2225	1447	54	2090	135
Pulses
Tur /Arhar		7550	4761	59	7000	550
Moong		8682	5788	50	8558	124

Crops		MSP 2024-25	Cost* KMS 2024-25	Margin over cost (%)	MSP 2023-24	MSP Increase in 2024-25 over 2023-24
Urad		7400	4883	52	6950	450
Oilseeds
Groundnut		6783	4522	50	6377	406
Sunflower Seed		7280	4853	50	6760	520
Soybean (Yellow)		4892	3261	50	4600	292
Sesamum		9267	6178	50	8635	632
Nigerseed		8717	5811	50	7734	983
Commercial
Cotton	(Medium Staple)	7121	4747	50	6620	501
	(Long Stapler	7521	–	–	7020	501

 

*Refers to cost which includes all paid out costs such as those incurred on account of hired human labour, bullock labour/machine labour, rent paid for leased in land, expenses incurred on use of material inputs like seeds, fertilizers, manures, irrigation charges, depreciation on implements and farm buildings, interest on working capital, diesel/electricity for operation of pump sets etc., miscellaneous expenses and imputed value of family labour.

A Cost data are not separately compiled for Paddy (Grade A), Jowar (Maldandi) and Cotton (Long staple)

The increase in MSP for Kharif Crops for Marketing Season 2024-25 is in line with the Union Budget 2018-19 announcement of fixing the MSP at a level of at least 1.5 times of the All-India weighted average cost of production, The expected margin to farmers over their cost of production are estimated to be highest in case of bajra (77%) followed by tur (59%), maize (54%) and urad (52%). For rest of the crops, margin to farmers over their cost of production is estimated to be at 50%.

 

In the recent years, Government has been promoting the cultivation of crops, other than cereals such as pulses and oilseeds, and Nutri-cereals/ Shree Anna, by offering a higher MSP for these crops.

During the period 2003-04 to 2013-14 for 14 crops covered under Kharif Marketing Season, the minimum absolute increase in MSP was Rs.745/- per quintal for Bajra and maximum absolute increase was Rs.3,130/- per quintal for Moong while during the period 2013-14 to 2023-24, the minimum absolute increase in MSP was Rs.780/- per quintal for Maize and maximum absolute increase was Rs.4,234/- per quintal for Nigerseed. Details are at Annexure-I.

 

During the period 2004-05 to 2013-14, the procurement of 14 crops covered under Kharif Marketing Season was 4,675.98 Lakhs Metric Ton (LMT) while during the period 2014-15 to 2023-24, procurement of these crops was 7,108.65 LMT. The year-wise details are at Annexure-II.

 

As per the 3rd Advance Estimates of production for 2023-24, total foodgrain production in the country is estimated at 3288.6 Lakhs Metric Ton (LMT), and oilseeds production is touching 395.9 LMT. During 2023-24, kharif production of rice, pulses, oilseeds and nutri-cereals/Shree Anna and cotton is estimated to be 1143.7 LMT, 68.6 LMT, 241.2 LMT, 130.3 LMT and 325.2 Lakh bales, respectively.

 

Annexure-I      Rs.per quintal

Crops		MSP 2003-04	MSP 2013-14	MSP 2023-24	.                      . Increase in MSP in 2013-14 over 2003- 04	.                . Increase in MSP in over 2023-24 over 2013-14
Cereals
		A	B	C	D=B-A	E=C-B
Paddy	Common	550	1310	2183	760	873
	Grade A^	580	1345	2203	765	858
Jowar	Hybrid	505	1500	3180	995	1680
	MaldandiA	–	1520	3225		1705
Bajra		505	1250	2500	745	1250
Ragi		505	1500	3846	995	2346
Maize		505	1310	2090	805	780
Pulses
Tur /Arhar		1360	4300	7000	2940	2700
Moong		1370	4500	8558	3130	4058
Urad		1370	4300	6950	2930	2650
Oilseeds
Groundnut		1400	4000	6377	2600	2377
Sunflower Seed		1250	3700	6760	2450	3060
Soybean (Yellow)		930	2560	4600	1630	2040
Sesamum		1485	4500	8635	3015	4135
Nigerseed		1155	3500	7734	2345	4234
			Commercial
Cotton	(Medium Staple)	1725	3700	6620	1975	2920
	(Long Staple)”	1925	4000	7020	2075	3020

 

 

 

Annexure-II

Procurement of Kharif Crops 2004-05 to 2013-14 and 2014-15 to
2023-24

In LMT

Crops	2004-05 to 2013-14	2014-15 to 2023-24
Cereals
	A	B
Paddy	4,590.39	6,914.98
Jowar	1.92	5.64
Bajra	5.97	14.09
Ragi	0.92	21.31
Maize	36.94	8.20
Pulses
Tur /Arhar	0.60	19.55
Moong	0.00	1
Urad	0.86	8.75
Oilseeds
Groundnut	3.45	32.28
Sunflower Seed	0.28
Soybean (Yellow)	0.01	1.10
Sesamum	0.05	0.03
Nigerseed	0.00	0.00
Commercial
Cotton	34.59	63.41
Total	4,675.98	7,108.65

 

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