The Union Cabinet on June 7 in its meeting granted its approval for an hike in Minimum Support Price (MSP) of Kharif crops for the 2023-24 season. In the press briefing Union Minister Piyush Goyal said that this decision aims to ensure profitable prices for farmers and promote crop diversification.

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The Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Narendra Modi, sanctioned the MSP increase for all Kharif crops mandated for the upcoming crop year.

During a media briefing, Food and Consumer Affairs Minister Goyal highlighted that MSP adjustments are periodically made in agriculture industry based on recommendations from the Commission for Agricultural Costs and Prices (CACP).

Goyal further mentioned that the MSP hike will benefit farmers, especially amidst declining retail inflation.

The cabinet has approved to increase the MSP of tur dal by Rs 400 per now the MSP of Toor Dal has gone up to Rs 7,000 per quintal. Similarly, an increase of Rs 350 per quintal has been approved in the MSP of Urad Dal, after which it has increased to Rs 6950 per quintal.

It has been approved to increase the MSP of maize by Rs 128 per quintal and to increase the MSP of paddy by Rs 143 per quintal to Rs 2813.

Paddy serves as the primary Kharif crop, with sowing usually commencing with the arrival of the southwest monsoon. Despite evolving El Nino conditions, the India Meteorological Department (IMD) has forecasted a normal monsoon for the June-September period.

While the monsoon's onset in Kerala has been delayed beyond June 1, the weather office predicts normal monsoon rainfall. However, there is a 90% likelihood of the development of an El Nino weather pattern during the monsoon season, which could result in below-average rainfall.

Agriculture contributes around 19 percent to India's $3 trillion economy and employs over half of the population of 1.4 billion.

First Published:Jun 7, 2023 1:28 PM IST