The Cabinet Committee on Economic Affairs (CCEA) has approved the increase in the Minimum Support Prices (MSP) for all mandated Kharif Crops for Marketing Season 2023-24. Chaired by the Prime Minister Narendra Modi, the CCEA has increased the MSP of Kharif Crops for Marketing Season 2023-24 to ensure remunerative prices to the growers for their produce and to encourage crop diversification.
The increase in MSP for Kharif Crops for this Marketing Season is in line with the Union Budget 2018-19, announcing the MSP at a level of at least 1.5 times of the All-India weighted average cost of production. It aims to provide reasonable fair remuneration for the farmers.
The expected margins to farmers over their cost of production are estimated to be highest in case of bajra with 82%, followed by tur with 58%, soybean 52% and urad 51%. For the rest of the crops, margin to farmers over their cost of production is estimated to be at least 50%.
In recent years, the government has been promoting the cultivation of crops, other than cereals such as pulses, oilseeds, and nutri-cereals by offering a higher MSP for these crops. Additionally, the government has also launched various schemes and initiatives such as the Rashtriya Krishi Vikas Yojana (RKVY), the National Food Security Mission (NFSM), to encourage farmers to diversify their crops.
As per the Third Advance Estimates for 2022-23, the total foodgrain production in the country is estimated at record 330.5 million tonnes which is higher by 14.9 million tonnes as compared to the previous year 2021-22. This is the highest increase in the last 5 years.
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