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Context

• The Union Cabinet approved the augmentation of Minimum Support Prices (MSP) for all mandated Kharif Crops for the Marketing Season 2024-25.
• This decision aims to ensure remunerative prices for growers, enhancing their livelihoods and incentivizing agricultural production.

MSP Revision for Kharif Crops 2024-25:

• The MSP for Kharif Crops for Marketing Season 2024-25 has been increased to provide fair prices to farmers for their produce.
• Notable increases in MSP have been recommended for oilseeds and pulses, with significant absolute increases observed in crops like nigerseed, sesamum, and tur/arhar.

MSP Table for Kharif Crops 2024-25:

Significance and Impact:

• The MSP increase aligns with the Union Budget 2018-19's directive of fixing MSP at a minimum of 1.5 times the All-India weighted average cost of production.
• Expected margins for farmers over their cost of production vary across crops, with significant margins projected for bajra, tur, maize, and urad.

Promotion of Diverse Crops:

• The government's emphasis on promoting crops beyond cereals, particularly pulses and oilseeds, through higher MSP reflects a broader strategy to diversify agricultural production.

Historical Perspective:

• Analysis of MSP trends from 2003-04 to 2023-24 reveals varying degrees of absolute MSP increases across different crops, highlighting the dynamic nature of agricultural pricing policies.

Procurement and Production Trends:

• Procurement of Kharif crops witnessed a substantial increase from 2004-05 to 2014-15 to 2014-15 to 2023-24, underscoring efforts to bolster agricultural productivity and support farmers.

Conclusion:

• The approval of increased MSP for Kharif Crops 2024-25 underscores the government's commitment to enhancing farmers' income and ensuring agricultural sustainability.
• By providing remunerative prices and promoting crop diversity, the MSP revision is poised to stimulate agricultural growth and rural prosperity.

MUST READ ARTICLES ON MSP:

https://www.iasgyan.in/daily-current-affairs/minimum-support-prices-msp

https://www.iasgyan.in/daily-current-affairs/minimum-support-prices-msp-17#:~:text=MSP%20is%20the%20price%20at,safeguard%20against%20volatile%20market%20prices.

https://www.iasgyan.in/daily-current-affairs/minimum-support-price-msp-19

https://www.iasgyan.in/daily-current-affairs/msp-for-kharif-crops

PRACTICE QUESTION Q. Explain the implications of the recent MSP hike for Kharif crops in India. Assess its effects on farmers' livelihoods, agricultural productivity, and food security. Highlight challenges in MSP implementation and propose strategies for ensuring equitable growth in the agricultural sector

SOURCE: PIB