Raising Market Selling Prices: 14 Kharif Crops Now Worth More, Paddy Valued at Rs 2369 per Quintal for the Year 2025-26 by the Government.
Article: Boosting Indian Farmers' Incomes with MSP Increases for Kharif Crops
The Indian government has taken a significant step to support farmers by increasing the Minimum Support Prices (MSP) for 14 Kharif crops for the 2025-26 marketing season. This move aims to ensure remunerative prices for farmers, aligning with the Union Budget 2018-19's announcement of fixing MSPs at least 1.5 times the all-India weighted average cost of production.
Over the past decade, the total MSP payout for all Kharif crops has risen significantly, from Rs 4.75 lakh crore to Rs 16.35 lakh crore. Paddy farmers have particularly benefited, with MSP payments totaling Rs 14.16 lakh crore in the last decade, compared to Rs 4.44 lakh crore in the previous period.
The government's strategy is to encourage the cultivation of essential crops that offer nutritional value and better income opportunities for farmers, such as pulses, oilseeds, and nutri-cereals, known as "Shree Anna." Notable increases in MSP have been seen in crops like ragi, cotton, and sesamum, with increases of Rs 596, Rs 589, and Rs 579 respectively.
The MSP for key crops like paddy and maize have also seen increases. The MSP for common paddy has risen from Rs 2300 to Rs 2369 per quintal, offering a margin of 81% over its production cost. Maize, on the other hand, has an MSP of Rs 2400 per quintal, while for tur (arhar) it is Rs 8000 per quintal.
The total procurement for all 14 Kharif crops during 2014-15 to 2024-25 was 7,871 LMT, an increase from the 4,679 LMT procured in the previous decade. Maize and tur have a margin of 59%, while urad has a margin of 53%. Nigerseed recorded the highest increase in MSP with a rise of Rs 820 per quintal.
This increase in MSP serves as a crucial safety net for farmers, providing a guaranteed price floor to protect them from price volatility and ensuring remunerative income, especially when market prices fall below production costs. The MSP for Kharif crops plays a critical role in safeguarding farmers’ income against market and climate risks, promoting sustainable cropping by incentivizing certain crops like maize, and stabilizing agricultural livelihoods through assured procurement and fair pricing.
By stabilizing farm incomes, MSP helps reduce distress sales, promotes cropping diversity, and supports food security through procurement for public distribution. Furthermore, MSP increases incentivize farmers to adopt better inputs and farming practices, potentially enhancing overall agricultural productivity.
In conclusion, the increase in MSP for Kharif crops is a significant step towards ensuring the financial security of Indian farmers and promoting sustainable farming practices. The government's commitment to increasing MSP for essential crops will continue to play a vital role in supporting India's agricultural sector and ensuring food security for its growing population.
The government's decision to enhance Minimum Support Prices (MSP) for 14 Kharif crops could potentially boost the finances of the agricultural business sector, as this move aims to provide farmers with remunerative prices. This increase in MSP serves as a safety net for farmers, helping stabilize farm incomes and promoting business opportunities within the agricultural sector.
