Home / Industry / Agriculture /  Union Cabinet hikes MSP for wheat, mustard, among others

New Delhi: The Cabinet Committee on Economic Affairs chaired by Prime Minister Narendra Modi on Tuesday approved raising minimum support prices (MSP) of rabi crops for the 2023-24 marketing season. The MSP for wheat, the most crucial of winter crops, was hiked by 110 per 100 kg on year to 2,125.

“The absolute highest increase in MSP has been approved for lentil (Masur) at 500/- per quintal (100 kg) followed by rapeseed and mustard at 400/- per quintal. For safflower, an increase of 209/- per quintal has been approved. For wheat, gram and barley an increase of 110/- per quintal, 100 per quintal respectively has been approved," the Cabinet Committee on Economic Affairs (CCEA) said in a press release.

MSP is the rate at which the Centre procures grains and other produce from farmers. As of now, the government fixes MSPs for 23 crops grown in both kharif and rabi seasons.

The increase is in line with the Centre’s decision to fix MSP at a minimum of 1.5 times the all-India weighted average cost of production, aiming at ensuring fair remuneration to farmers.

The maximum rate of return is 104% for rapeseed & mustard, followed by 100% for wheat, 85% for lentil, 66% for gram, 60% for barley, and 50% for safflower.

From the year 2014-15, there has been a renewed focus on increasing the production of oilseeds and pulses. The efforts have yielded good results. Oilseeds production has increased from 27.51 million tonnes in 2014-15 to 37.70 million tonnes in 2021-22 (4th advance estimates). Pulses production has shown similar increasing trend. The Seed Minikits programme is a major tool for introducing new varieties of seeds in the farmers’ fields and is instrumental for increasing the seed replacement rate.

The productivity of pulses and oilseeds have increased substantially since 2014-15. In case of pulses productivity has been increased from 728 kg/ha (2014-15) to 892 kg/ha (4th Advance estimates, 2021-22) i.e. 22.53% increase. Similarly, in oilseed crops productivity has been increased from 1075 kg/ha (2014-15) to 1292 kg/ha (4th Advance estimates, 2021-22).

The government’s priority is on increasing production of oilseeds and pulses and thus fulfilling the objective of Atmanirbhar Bharat. The formulated strategies are to increase production through area expansion, productivity through High Yielding Varieties (HYVs), MSP support and procurement.

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