The Central government has sanctioned a hike in the Minimum Support Prices (MSP) for Rabi crops for the 2023-24 cycle, applicable to the 2024-25 Rabi Marketing Season (RMS). Farmers can now review the updated support prices for all mandated Rabi crops scheduled for marketing in 2024-25. These revised MSP rates for 2023-24 follow the guidelines and recommendations set by the Swaminathan Commission.
The most significant MSP increases were granted to lentils (an extra Rs. 425 per quintal) and rapeseed & mustard (an extra Rs. 200 per quintal), followed by safflower and wheat (an extra Rs. 150 per quintal). Barley and gram saw increases of Rs. 115 and Rs. 105 per quintal, respectively. This tiered pricing structure is designed to promote diverse crop cultivation.
Rabi Crops MSP 2023-24 / MSP for RMS 2024-25
Rabi crops are typically winter-grown and spring-harvested. The newly adjusted MSP for 2023-24 will apply to produce marketed during the 2024-25 season. This policy guarantees a profit margin of at least 50% over production costs. Raising the Rabi MSP is a strategic effort to double farmer income by 2024 and enhance their financial stability. Below is the full table detailing the 2023-24 minimum support prices for the 2024-25 marketing cycle.
| Crop | MSP for RMS 2022-23 (Rs. / quintal) | MSP for RMS 2023-24 | MSP for RMS 2024-25 | Cost of production 2023-24 (Rs. / quintal) | Absolute Increase in MSP | Return over cost (%) |
|---|---|---|---|---|---|---|
| Wheat | 2015 | 2125 | 2275 | 1128 | 150 | 102 |
| Barley | 1635 | 1735 | 1850 | 1158 | 115 | 60 |
| Gram | 5230 | 5335 | 5440 | 3400 | 105 | 60 |
| Masur (Lentil) | 5500 | 6000 | 6425 | 3405 | 425 | 89 |
| Rapeseed & Mustard | 5050 | 5450 | 5650 | 2855 | 200 | 98 |
| Safflower | 5441 | 5650 | 5800 | 3807 | 150 | 52 |
Paid Out Costs Included in New Rabi Crops MSP
The revised MSP for the 2023-24 Rabi season includes all operational expenses incurred by farmers, specifically covering:
- Hired human labor,
- Draft animal power and machine labor costs
- Rent paid for leased farmland
- Expenditure on inputs such as seeds, fertilizers, and manure
- Irrigation expenses
- Depreciation of farm tools and buildings
- Interest costs on working capital
- Fuel and electricity for irrigation pumps
- The imputed value of family labor
This pricing hike adheres to the government's commitment, announced in the 2018-19 Union Budget, to set MSPs at a minimum of 1.5 times the All-India weighted average production cost.