Cabinet approves Minimum Support Prices (MSP) for Kharif Crops for Marketing Season 2024-25

The Union Cabinet chaired by Prime Minister Shri Narendra Modi today approved the increase in the Minimum Support Prices (MSP) for all mandated Kharif Crops for Marketing Season 2024-25.

Government has increased the MSP of Kharif Crops for Marketing Season 2024-25, to ensure remunerative prices to the growers for their produce. The highest absolute increase in MSP over the previous year has been recommended for oilseeds and pulses viz. nigerseed (Rs.983/- per quintal) followed by sesamum (Rs.632/- per quintal) and tur/arhar (Rs.550/- per quintal).

Minimum Support Prices for all Kharif crops for Marketing Season 2024-25

Rs. per quintal

Crops MSP
2024-25
Cost* KMS
2024-25
Margin over
cost (%)
MSP
2023-24
MSP Increase
in 2024-25
over 2023-24
Cereals
         
Paddy Common 2300 1533 50 2183 117
Grade A^ 2320 2203 117
Jowar Hybrid 3371 2247 50 3180 191
Maldandi” 3421 3225 196
Bajra 2625 1485 77 2500 125
Ragi 4290 2860 50 3846 444
Maize 2225 1447 54 2090 135
Pulses          
Tur /Arhar 7550 4761 59 7000 550
Moong 8682 5788 50 8558 124

Text Box: Page 2 of 5

Crops MSP
2024-25
Cost* KMS
2024-25
Margin over
cost (%)
MSP
2023-24
MSP Increase
in 2024-25
over 2023-24
       
Urad 7400 4883 52 6950 450
Oilseeds          
Groundnut 6783 4522 50 6377 406
Sunflower Seed 7280 4853 50 6760 520
Soybean (Yellow) 4892 3261 50 4600 292
Sesamum 9267 6178 50 8635 632
Nigerseed 8717 5811 50 7734 983
Commercial          
Cotton (Medium Staple) 7121 4747 50 6620 501
(Long Stapler 7521 7020 501

 

*Refers to cost which includes all paid out costs such as those incurred on account of hired human labour, bullock labour/machine labour, rent paid for leased in land, expenses incurred on use of material inputs like seeds, fertilizers, manures, irrigation charges, depreciation on implements and farm buildings, interest on working capital, diesel/electricity for operation of pump sets etc., miscellaneous expenses and imputed value of family labour.

A Cost data are not separately compiled for Paddy (Grade A), Jowar (Maldandi) and Cotton (Long staple)

The increase in MSP for Kharif Crops for Marketing Season 2024-25 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, The expected margin to farmers over their cost of production are estimated to be highest in case of bajra (77%) followed by tur (59%), maize (54%) and urad (52%). For rest of the crops, margin to farmers over their cost of production is estimated to be at 50%.

 

In the recent years, Government has been promoting the cultivation of crops, other than cereals such as pulses and oilseeds, and Nutri-cereals/ Shree Anna, by offering a higher MSP for these crops.

During the period 2003-04 to 2013-14 for 14 crops covered under Kharif Marketing Season, the minimum absolute increase in MSP was Rs.745/- per quintal for Bajra and maximum absolute increase was Rs.3,130/- per quintal for Moong while during the period 2013-14 to 2023-24, the minimum absolute increase in MSP was Rs.780/- per quintal for Maize and maximum absolute increase was Rs.4,234/- per quintal for Nigerseed. Details are at Annexure-I.

 

During the period 2004-05 to 2013-14, the procurement of 14 crops covered under Kharif Marketing Season was 4,675.98 Lakhs Metric Ton (LMT) while during the period 2014-15 to 2023-24, procurement of these crops was 7,108.65 LMT. The year-wise details are at Annexure-II.

 

As per the 3rd Advance Estimates of production for 2023-24, total foodgrain production in the country is estimated at 3288.6 Lakhs Metric Ton (LMT), and oilseeds production is touching 395.9 LMT. During 2023-24, kharif production of rice, pulses, oilseeds and nutri-cereals/Shree Anna and cotton is estimated to be 1143.7 LMT, 68.6 LMT, 241.2 LMT, 130.3 LMT and 325.2 Lakh bales, respectively.

 

Annexure-I      Rs.per quintal

Crops MSP
2003-04
MSP
2013-14
MSP
2023-24
.                      .

Increase in
MSP in
2013-14
over 2003-
04

.                .

Increase in

MSP in
over 2023-24 over
2013-14

Cereals
A B C D=B-A E=C-B
Paddy Common 550 1310 2183 760 873
Grade A^ 580 1345 2203 765 858
Jowar Hybrid 505 1500 3180 995 1680
MaldandiA 1520 3225   1705
Bajra 505 1250 2500 745 1250
Ragi 505 1500 3846 995 2346
Maize 505 1310 2090 805 780
Pulses          
Tur /Arhar 1360 4300 7000 2940 2700
Moong 1370 4500 8558 3130 4058
Urad 1370 4300 6950 2930 2650
Oilseeds          
Groundnut 1400 4000 6377 2600 2377
Sunflower Seed 1250 3700 6760 2450 3060
Soybean (Yellow) 930 2560 4600 1630 2040
Sesamum 1485 4500 8635 3015 4135
Nigerseed 1155 3500 7734 2345 4234
    Commercial      
Cotton (Medium

Staple)

1725 3700 6620 1975 2920
(Long Staple)” 1925 4000 7020 2075 3020

 

 

 

Annexure-II

Procurement of Kharif Crops 2004-05 to 2013-14 and 2014-15 to
2023-24

In LMT

Crops 2004-05 to 2013-14 2014-15 to 2023-24
Cereals
A B
Paddy 4,590.39 6,914.98
Jowar 1.92 5.64
Bajra 5.97 14.09
Ragi 0.92 21.31
Maize 36.94 8.20
Pulses    
Tur /Arhar 0.60 19.55
Moong 0.00 1
Urad 0.86 8.75
Oilseeds    
Groundnut 3.45 32.28
Sunflower Seed 0.28  
Soybean (Yellow) 0.01 1.10
Sesamum 0.05 0.03
Nigerseed 0.00 0.00
Commercial    
Cotton 34.59

 

63.41
Total 4,675.98 7,108.65