Centre hikes minimum support prices for 14 kharif crops; inflation not considered, say farmers

Hyderabad: The Union government on Thursday approved the increase in the Minimum Support Prices (MSP) for 14 Kharif crops such as cereals, oilseeds, pulses and others for 2024-25. The decision was made during the Cabinet meeting chaired by prime minister Narendra Modi. The United Kisan Morcha (non-political) and Kisan Mazdoor Morcha at Kisan Bhawan in Chandigarh, expressed dissatisfaction regarding the changes to MSP.

Cabinet approvals

According to the latest changes, the new MSP for paddy (common) is Rs 2,300 for 2024-25 which is Rs 117 increase from Rs 2,183 in 2023-24. Similarly, the new MSPs for bajra, ragi and maize are Rs 2,625, Rs 4,290 and Rs 2,225, respectively.

For oilseeds, the new MSP is Rs 6,783 (groundnut), Rs 7,280 (sunflower) and Rs 4,892 (soybean).

However, the farmer unions leading the Kisan Andolan 2.0 termed the increase in MSP as inadequate and said that farmers will not benefit till the law guaranteeing the purchase of crops on MSP is not made.

What are the changes made to the MSP of Kharif crops?

The government has increased the MSP of Kharif crops for the marketing season 2024-25, to ensure remunerative prices to the growers for their produce.

The highest absolute increase in MSP over the previous year has been recommended for oilseeds and pulses viz. nigerseed (Rs 983 per quintal) followed by sesamum (Rs 632 per quintal) and tur/arhar (Rs 550 per quintal).

The government said that the increase in MSP for Kharif crops is in line with the Union Budget 2018-19 announcement of fixing the MSP at a level of at least 1.5 times of the All-India weighted average cost of production.

‘Profit margins of farmers will rise considerably’ says govt

The expected margin to farmers over their cost of production is estimated to be highest in the case of bajra (77 per cent) followed by tur (59%), maize (54%) and urad (52%). For the rest of the crops, margin to farmers over their cost of production is estimated to be at 50 per cent.

The government said that in recent years, it has been promoting the cultivation of crops, other than cereals such as pulses and oilseeds, and nutri-cereals/Shree Anna, by offering a higher MSP for these crops.

“During the period 2003-04 to 2013-14 for 14 crops covered under Kharif marketing season, the minimum absolute increase in MSP was Rs 745 per quintal for Bajra and a maximum absolute increase was Rs 3,130 per quintal for Moong while during the period 2013-14 to 2023-24, the minimum absolute increase in MSP was Rs 780 per quintal for Maize and a maximum absolute increase was Rs 4,234 per quintal for Nigerseed,” the government said in a public notice.

During the period 2004-05 to 2013-14, the procurement of 14 crops covered under Kharif Marketing Season was 4,675.98 Lakhs Metric Ton (LMT) while during the period 2014-15 to 2023-24, the procurement of these crops was 7,108.65 LMT, the government said.

Government data on foodgrain and oilseed production

As per the 3rd Advance Estimates of production for 2023-24, total foodgrain production in the country is estimated at 3,288.6 Lakhs Metric Ton (LMT) and oilseeds production is touching 395.9 LMT.

During 2023-24, kharif production of rice, pulses, oilseeds and nutri-cereals/Shree Anna and cotton is estimated to be 1143.7 LMT, 68.6 LMT, 241.2 LMT, 130.3 LMT and 325.2 Lakh bales, respectively.

Farmers say the increase in MSP is negligible in line with inflation

In a press conference on Thursday, farmers said that the increase in MSP is inadequate, the farmer leaders present said that paddy has increased by Rs 117 (5.35%) and millet by Rs 125 (5%), while in May 2024 the inflation rate in the rural area is 5.28 per cent.

They said that the movement, which started in February 13 this year, will continue till the MSP guarantee law is made.

Farmer leaders further said that on July 8, a memorandum of demands of the farmer movement will be submitted to the MPs of all parties of the country except the 240 MPs of BJP so that all the demands of the farmers including the MSP guarantee law will be debated in the Parliament.

To strengthen and expand the movement, the farmers are planning a meeting and a press conference in Jaipur on June 21; in Ashoknagar, Madhya Pradesh on June 22; a meeting and press conference in Malegaon, Maharashtra on June 23; and a meeting of more than 50 organisations in Karnataka on June 24.