Government Considers MSP Hike for Essential Rabi Crops Ahead of Upcoming Elections

Mumbai, 16 Sep (Commoditiescontrol):As the nation prepares for high-stakes general and state assembly elections, the government is contemplating an increase in the minimum support price (MSP) of six rabi or winter crops. Proposed hikes, which range from 2% to 7% for the 2024-25 marketing season, are currently under cabinet review based on recommendations from a farm prices panel.

The most significant proposed hikes pertain to wheat and lentil (masur), as disclosed by two anonymous officials. MSP serves as a pivotal safety mechanism for Indian farmers, assuring them a minimum income regardless of fluctuating market prices. Furthermore, MSP plays a vital role in national food security by motivating farmers to produce specific crops, ensuring stable pricing for essential staples such as wheat, rice, and lentils.

In the last season, the MSP for wheat saw an elevation of 5.5% from its preceding year, settling at 2,125 per quintal (100 kg). Simultaneously, masur's minimum price experienced a notable 9.1% surge, reaching 6,000 per quintal. As per media sources the next season's MSP could witness an approximate rise of 7% for both wheat and masur, estimating to 2,275-2,300 and 6,425-6,450 a quintal, respectively.

Consistent with the previous year's trend, anticipated MSP hikes for barley and chana (Bengal gram) remain in the 2%-6.6% range. While chana might undergo a modest 2% increase, settling between 5,440-5,475 per quintal, barley could experience a 6.6% boost to 1,850-1,900 per quintal.

Additionally, major oilseeds like rapeseed and mustard may see a 3.6%-4% hike, ranging from 5,650-5,700 per quintal. Meanwhile, sallower's MSP could be adjusted upwards by 2.6%-3%, hovering between 5,800-5,850 per quintal.

Almost half of India's total foodgrains output comes from the rabi season.

An official stated, “The Commission for Agricultural Costs and Prices (CACP) has relayed its suggestions, and relevant departments are currently reviewing the cabinet note.” The Cabinet Committee on Economic Affairs will make the final decision on the MSP in the upcoming month.

Every year, the Centre sets the MSP for kharif and rabi crops in June and October respectively. These decisions align with the Union Budget 2018-19's declaration, ensuring farmers receive a minimum MSP set at 1.5 times the all-India weighted average production cost.

(By CommoditiesControl Bureau; +91-9820130172)