The government has hiked the minimum support price (MSP) for six Rabi crops like wheat, gram, lentils rapeseed, and mustard, among others, from Rs 100 to Rs 500 per quintal for the marketing season of 2023-24.
The MSP for lentils has been hiked by Rs 500 per quintal, while the support price for rapeseed and mustard has been increased by Rs 400 per quintal.
Wheat MSP has been hiked by Rs 110 per quintal, safflower by Rs 209 per quintal, gram by Rs 105 per quintal, and barley by Rs 100 per quintal, Minister for Information and Broadcasting Anurag Thakur told media persons after the meeting.
The MSP of gram has increased from 3175 to 5335 in comparison to 2014 rate and for Lentil it has increased from 3075 to 6000 for Marketing Season 2023-24.
The decision taken by the Union Cabinet on Tuesday came a day after the Centre released the 12th installment of the Kisan Samman Nidhi in the accounts of farmers via direct benefit transfer.
It is worth noting that decision to increase MSP has been taken in line with Union Budget 2018 announcement of fixing MSP at a level of at least 1.5 times of average cost of production.
Under the MSP mechanism, the government fixes the minimum price for crops.
Even if prices of certain crops fall, the Centre still purchases them from farmers at the MSP to insulate them from losses.