Cabinet approves increase in MSP for all mandated Kharif Crops

The Cabinet Committee on Economic Affairs (CCEA) has approved an increase in Minimum Support Price, MSP, for all mandated Kharif Crops for Marketing Season 2023-24. The Cabinet has taken this decision to ensure remunerative prices to growers for their produce and to encourage crop diversification. Briefing media in New Delhi on Wednesday, Union Minister Piyush Goyal said this year's increased MSP is the biggest in the last several years. 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 the All-India weighted average Cost of Production, aiming at reasonably fair remuneration for the farmers.
MSP of the common grade variety of paddy has been increased by 143 rupees to 2,183 rupees quintal for the 2023-24 crop year, from 2,040 rupees in the previous year. The support price of 'A' grade variety of paddy has been hiked by 163 rupees to 2,203 rupees per quintal from 2,060 rupees. The highest increase in MSP is in moong by 10.4 percent at 8,558 rupees per quintal for 2023-23 crop year, as against 7,755 rupees per quintal in the previous year. The expected margin to farmers over their cost of production is estimated to be highest in the case of Bajra at 82 percent followed by tur at 58 percent, soybean at 52 percent, and urad at 51 percent. For the rest of the crops, the margin to farmers over their cost of production is estimated to be at least 50 percent. 
In recent years, Government has been promoting the cultivation of crops, other than cereals such as pulses, oilseeds, and Nutri-cereals or Shree Anna, 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, and National Food Security Mission to encourage farmers to diversify their crops.As per Third Advance Estimates for 2022-23, total Foodgrain production in the country is estimated at a 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 five years.