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. MSP of the common grade variety of paddy has been increased by 7% on year to Rs 2,183 per quintal for the 2023-24 crop year. The price of 'A' grade variety of paddy has been hiked by 6.94% to Rs 2,203 per quintal. The MSP for Bajra has been hiked by 6.38% to Rs 2500 per quintal while that of Maize has been raised by 6.52% at Rs 2090 per quintal. In pulses, the MSP of Tur has been increased by 6% to Rs 7000 per quintal. MSP of Moong is up 10.35% to Rs 7000 per quintal while MSP of Urad is up 5.30% at Rs 6950 per quintal. In oilseeds, the MSP of Soybean has been raised by 7% to Rs 4600 per quintal while that of Groundnut has been hiked by 9% to Rs 6377 per quintal.

The increase in MSP for Kharif Crops for Marketing Season 2023-24 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, aiming at reasonably fair remuneration for the farmers. The expected margin to farmers over their cost of production are estimated to be highest in case of bajra (82%) followed by tur (58%), soybean (52%) and urad (51%). For rest of the crops, margin to farmers over their cost of production is estimated to be at least 50%.

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