Cabinet approves hike in MSP for Kharif crops for the 2023-24 year

New Delhi: The government on Wednesday hiked the minimum support price (MSP) of paddy by Rs 143 to Rs 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.

The Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Narendra Modi, approved the increase in MSP for all mandated Kharif (summer) crops for the 2023-24 crop year.

Briefing media, Food and Consumer Affairs Minister Piyush Goyal said: "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." 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 Rs 143 to Rs 2,183 per quintal for the 2023-24 crop year, from Rs 2,040 in the previous year.

The support price of 'A' grade variety of paddy has been hiked by Rs 163 to Rs 2,203 per quintal from Rs 2,060, he said.

Highest increase in MSP was in moong by 10.4 per cent at Rs 8,558 per quintal for 2023-23 crop year, as against Rs 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.