Govt weighs 3-8% increase in MSP for kharif crops

The central government is weighing a 3-8% increase in the minimum support price (MSP) for key kharif crops in 2023-24, according to two people familiar with the development.

- Puja Das

The MSP for common and grade A paddy varieties could see a 3-7% increase to the range of ₹2,100-2,200 per quintal, one of the two people said, requesting anonymity. For maize, the MSP is likely to be raised to ₹2,050-2,100 per quintal from ₹1,962 a year ago.

The MSP serves as a crucial safety net for farmers in India by guaranteeing a minimum price for their produce. It also helps ensure food security and stabilizes market prices of staples. The government also uses the MSP to encourage farmers to cultivate certain crops.

The MSP of kharif pulses is expected to be raised by 6-8%, with tur (arhar) and urad likely to be set at nearly ₹7,000 per quintal and moong expected to reach ₹8,400-8,450 per quintal, potentially the season’s highest among key cereals and pulses, the person said.