• UGI USER
  • Jun 20, 2024
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CABINET CLEARS MSP HIKE FOR 14 KHARIF CROPS

Why in News ?

Union Cabinet approved raising the minimum support price (MSP) for paddy by 5.35% to ₹2,300 per quintal for the 2024-25 kharif marketing season.

Source- IE

About the News:

  • The decision aligns with the government’s policy of setting MSPs at least 1.5 times above the cost of production.
  • Election Context:The decision comes ahead of Assembly elections in Haryana, Maharashtra, Jharkhand, and Delhi.
  • MSP for Other Crops:MSP hikes were approved for all 14 kharif season crops.
  • Only four crops (bajra, arhar dal, maize, and black gram) have MSPs providing farmers with more than 50% margin above production costs.
  • Paddy MSP Hike:Paddy, the key kharif crop, will see an MSP increase of ₹117 per quintal, providing a 50% margin to farmers.
  • This increase comes despite the government holding a record stockpile of rice.
  • Financial Implications:The MSP hike is expected to result in a financial implication of ₹2 lakh crore, about ₹35,000 crore higher than the previous season.
  • Significant Increases:The highest absolute MSP increases were for oilseeds and pulses.
  • Nigerseed saw an MSP rise of ₹983 per quintal, sesamum ₹632 per quintal, and arhar dal ₹550 per quintal.
  • Timing and Impact:Kharif sowing begins in June with the southwest monsoon, and the crop marketing season runs from October 2024 to September 2025.
  • The MSP hike is aimed at boosting farmers’ incomes.

Associated article :

https://universalinstitutions.com/minimum-support-price/