Cabinet increases paddy MSP to ₹2,183 per quintal, moong dal sees highest hike

The Union cabinet has approved an increased minimum support price (MSP) of kharif crops for marketing season 2023-24.

The move is to ensure remunerative prices to growers for their produce and to encourage crop diversification,” said Union minister Piyush Goyal on Wednesday.

The Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Narendra Modi, approved the hike in the MSP of paddy by ₹143 to ₹2,183 per quintal for the 2023-24 crop year (July-June) in order to encourage farmers to bring more area under the crop and boost their income.

“In agriculture, we have been fixing MSP from time to time based on the recommendations of the CACP (Commission for Agricultural Costs and Prices). The increase in MSP of kharif crops for this year is highest compared to the previous years,” Goyal said at a media briefing.

Farmers will benefit from the increase in the MSP at a time when retail inflation is on a declining trend, he added.

Goyal said the MSP of the common grade variety of paddy has been increased by ₹143 to ₹2,183 per quintal for the 2023-24 crop year, from ₹2,040 in the previous year. The support price of ‘A’ grade variety of paddy has been hiked by ₹163 to ₹2,203 per quintal from ₹2,060, he added.

The highest increase in MSP was in moong by 10.4 per cent at ₹8,558 per quintal for 2023-23 crop year, as against ₹7,755 per quintal in the previous year.

Paddy is the main kharif crop, the sowing of which normally begins with the onset of southwest monsoon. The India Meteorological Department (IMD) has projected a normal monsoon for the June-September period despite the evolving El Nino conditions.

The monsoon has missed its onset date of June 1 in Kerala.