The Cabinet Committee of Economic Affairs, on Wednesday, granted approval for an up to 9 percent increase in the Minimum Support Prices (MSP) for all designated Rabi crops during the marketing season of 2024-25. The most significant increase in MSP has been sanctioned for lentils (masur) at Rs 425 per quintal, with rapeseed and mustard following at an increase of Rs 200 per quintal each. Wheat and safflower have received approvals for an increase of Rs 150 per quintal each, while barley and gram have been granted an increase of Rs 115 per quintal and Rs 105 per quintal, respectively.
This surge in MSP for Rabi crops aligns with the government’s budget announcement from 2018-19, which aimed to establish MSP at a minimum of 1.5 times the All-India weighted average cost of production. The expected margin over the cost of production is notably 102 percent for wheat, followed by 98 percent for rapeseed and mustard, 89 percent for lentils, 60 percent for gram, 60 percent for barley, and 52 percent for safflower. These enhanced MSP rates for Rabi crops serve as a mechanism to provide profitable prices to farmers, encouraging diversification in crop production.
The increase in MSP for Rabi crops not only benefits farmers by guaranteeing fair returns for their produce but also serves as an incentive for them to explore a wider range of crops, ultimately promoting agricultural diversification.
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