The Union Cabinet chaired by Prime Minister Narendra Modi today approved a hike in the minimum support price (MSP) for all mandated rabi crops for the marketing season 2023-24. The move is aimed at ensuring remunerative prices for the farmers. MSP is the price at which the government buys products from the farmers. At present, MSP applies for 23 crops.

The highest increase in MSP has been approved for lentils (or masur) at Rs 500 per quintal followed by rapeseed and mustard at Rs 400 per quintal. For wheat, gram and barley an increase of Rs.110/- per quintal, Rs.100 per quintal respectively has been approved.

The sowing season for Rabi crops which include wheat commences in October.

Meanwhile, untimely rains have impacted the Kharif crops which include rice, which in turn can further push food inflation.

The government has already imposed a ban on rice and wheat to contain domestic prices.

“The increase in MSP for Rabi Crops for Marketing Season 2023-24 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, aiming at reasonably fair remuneration for the farmers,” an official statement said.

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