Cabinet hikes MSPs for 6 rabi crops

The Union Cabinet, chaired by Prime Minister Narendra Modi, on Wednesday approved hikes in minimum support prices (MSP) for six main rabi or winter-sown crops in line with its food policy of offering higher incentives for scarce commodities such as pulses and oilseeds.

- Zia Haq

Among the six crops, lentil (masur) prices were raised the most by ₹425 to ₹6,425 a quintal from ₹6,000 a quintal in the previous season in keeping with the government's goal of reducing the dependence on imports for pulses, the commonest source of proteins for most Indians.

The council of ministers raised the MSP for wheat, the main winter staple, by ₹150 to ₹2,275 a quintal (100 kg) for 2024-25, the highest increase for the grain since 2015-16. Ample crop output is crucial to keep a lid on prices and for rural prosperity in a country where nearly half the population depends on a farm-derived income.

"The Modi government has given priority to farmers' welfare. The increase in the MSP of the rabi 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," Union minister for information and broadcasting Anurag Thakur said. This translates to 50% returns over the cost of cultivation. The minister said the government had taken various measures to check a rise in food prices, including free distribution of grains.