The government has announced a 2-7 per cent increase in minimum support prices (MSPs) of rabi crops, as sowing has begun in some places after the early harvest of some kharif crops. A maximum 7 per cent increase has been effected in wheat and masur (lentil), two key winter crops, which are believed to have reported lower than expected production in the past two years.

The MSP of wheat, a key winter cereal, has been hiked by Rs 150 a quintal to Rs 2,275/quintal for the 2024-25 marketing season (April-March), from Rs 2,125/quintal now. The sowing season for rabi crops starts from October, whereas the harvesting season commences in April.

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The MSP of mustard has been hiked by 3.7 per cent to Rs 5,650/ quintal, chana (gram) by 2 per cent to Rs 5,440/ quintal, masur by 7.1 per cent to Rs 6,425/ quintal, barley by 6.6 per cent to Rs 1,850/ quintal and safflower by 2.7 per cent to Rs 5,800/quintal.

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The Cabinet Committee on Economic Affairs has approved the increase in MSP for Rabi Crops for the 2024-25 (April-March) marketing season, said Information and Broadcasting Minister Anurag Singh Thakur. “Based on the CACP recommendation, we have increased the MSP of six rabi crops,” he said.

Though MSP is the minimum rate ensured to protect the interests of farmers, there is no bar in selling produce above it. However, the government purchases the crops at MSP.

The new MSP of wheat is 102 per cent of its cost of production (A2+FL), estimated at Rs 1,128 per quintal, while that of masur is 89 per cent of cost of Rs 3,405/quintal. In case of mustard, it is 98 per cent of cost of Rs 2,855/quintal, and the chana MSP is 60 per cent of Rs 3,400/quintal cost.

The A2+FL cost of production includes all paid-out costs such as those incurred on account of hired human labour, bullock labour/ machine labour, rent paid for leased land, expenses incurred on use of material inputs such as seeds, fertilisers, manure, 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. Farmers have been demanding that the C2 cost of production be considered while fixing MSP, as that includes the imputed value of the land.

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The increase in next year’s MSP is in line with the Union Budget 2018-19 announcement of fixing the MSP at a minimum 1.5 times the all-India weighted average cost of production (A2+FL), the government said in a statement. “The increased MSP of rabi crops will ensure remunerative prices for farmers and incentivise crop diversification,” it said.

The Government is promoting crop diversification towards oilseeds, pulses and Shree Anna (millets), to enhance food security, increase farmers’ income and reduce dependence on imports.

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