Agriculture

Centre hikes Kharif crops’ MSP; paddy at Rs 2,183 per quintal

Paddy MSP up by Rs 143 for 2023-24; expected margin to farmers at least 50%, claims Centre

By Nandita Banerji
Published: Wednesday 07 June 2023
The MSP for paddy (common) is 7 per cent higher than Rs 2,040 per quintal in the last season. Photo: iStock12jav.net12jav.net

The central government June 7, 2023 announced an increase in the minimum support price (MSP) of Kharif crops for the marketing season 2023-24. Paddy prices were hiked to Rs 2,183 per quintal for this year, an increase of Rs 143. 

The Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Narendra Modi, approved the MSP of all mandated Kharif crops grown in the 2023-24 crop year and procured in Kharif marketing season (October-September). 

As per Third Advance Estimates for 2022-23, total foodgrain production in the country is estimated at record 330.5 million tonnes, said a release by the Press Information Bureau. The production is higher by 14.9 million tonnes as compared to 2021-22. This is the highest increase in the last five years, it added. 

The expected margin to farmers over their cost of production is at least 50 per cent or higher, the Centre said. The margin is estimated to be highest in the case of pearl millet or bajra (82 per cent) followed by pigeon pea or tur (58 per cent), soybean (52 per cent) and black gram or urad (51 per cent).

The highest increase in the paddy MSP in the last 10 years was by Rs 200 per quintal in 2018-19, reported news agency Press Trust of India. For 2023-24 Kharif crops, MSP has been increased in the range of 5.3 to 10.35 per cent. In absolute terms it has been increased by Rs 128 to Rs 805 per quintal, it added. 

The hike in MSP for Kharif crops for the marketing season 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,” the Centre said. 

“This move is to ensure remunerative prices to growers for their produce and to encourage crop diversification,” Union minister Piyush Goyal said while addressing a press conference, reported newspaper The Times of India. 

The MSP for paddy (common) is 7 per cent higher than Rs 2,040 per quintal in the last season, Goyal said. The prices for paddy (A grade) has been fixed at Rs 2,203 per quintal, higher than last year’s figure of Rs 2,060 per quintal.

Minimum Support Prices for Kharif Marketing Season (KMS) 2023-24 (Rs per quintal)

Crops

MSP 2014-15

MSP 2022-23

MSP 2023-24

 Cost* KMS 2023-24

Increase in MSP over 2022-23

Margin over cost in per cent

Paddy -Common

1,360

2,040

2,183

1,455

143

50

Paddy-Grade A^

1,400

2,060

2,203

-

143

-

Jowar-Hybrid

1,530

2,970

3,180

2,120

210

50

Jowar- Maldandi^

1,550

2,990

3,225

-

235

-

Bajra

1,250

2,350

2,500

1,371

150

82

Ragi

1,550

3,578

3,846

2,564

268

50

Maize

1,310

1,962

2,090

1,394

128

50

Tur /Arhar

4,350

6,600

7,000

4,444

400

58

Moong

4,600

7,755

8,558

5,705

803

50

Urad

4,350

6,600

6,950

4,592

350

51

Groundnut

4,000

5,850

6,377

4,251

527

50

Sunflower Seed

3,750

6,400

6,760

4,505

360

50

Soybean (Yellow)

2,560

4,300

4,600

3,029

300

52

Sesamum

4,600

7,830

8,635

5,755

805

50

Nigerseed

3,600

7,287

7,734

5,156

447

50

Cotton (Medium Staple)

3,750

6,080

6,620

4,411

540

50

Cotton (Long Staple) ^

4,050

6,380

7,020

-

640

-

*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.

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

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