Increase in Minimum Support Prices (MSP) for Kharif Crops 2024-25

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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

SOURCE: PIB