New Delhi, May 28 (IANS) The Cabinet Committee on Economic Affairs, chaired by Prime Minister Narendra Modi, has approved the increase in the Minimum Support Prices (MSP) for 14 kharif crops for marketing season 2025-26 to ensure remunerative prices to the growers for their produce, according to an official statement issued on Wednesday.

The highest absolute increase in MSP over the previous year has been recommended for nigerseed (Rs 820 per quintal), followed by ragi (Rs 596 per quintal), cotton (Rs 589 per quintal), and sesamum (Rs 579 per quintal).

The increase in MSP for kharif crops for the 2025-26 marketing season is in line with the Union Budget 2018-19 announcement of fixing the MSP at a level of at least 1.5 times of the all-India weighted average cost of production, The expected margin to farmers over their cost of production are estimated to be highest in case of bajra (63 per cent) followed by maize (59 per cent), tur (59 per cent) and urad (53 per cent ). For the rest of the crops, the margin to farmers over their cost of production is estimated to be at 50 per cent, the statement said.

The total cost includes all paid out costs such as those incurred on account of hired human labour, bullock labour/machine labour, rent paid for leased in land, expenses incurred on use of material inputs like seeds, fertilisers, manures, irrigation charges, depreciation on implements and farm buildings, interest on working capital, diesel/electricity for operation of pump sets etc., miscellaneous expenses and imputed value of family labour.

In recent years, the government has been promoting the cultivation of crops, other than cereals, such as pulses and oilseeds, and nutri-cereals/Shree Anna, by offering a higher MSP for these crops.

During the period 2014-15 to 2024-25, procurement of paddy was 7,608 LMT, while during the period 2004-05 to 2013-14, procurement of paddy was 4,590 LMT. Between 2014-15 to 2024-25, the MSP amount paid to paddy-growing farmers was Rs 14.16 lakh crore, while during the period 2004-05 to 2013-14, the amount paid to farmers was Rs 4.44 lakh crore.

During the period 2014-15 to 2024-25, procurement of 14 Kharif crops was 7,871 LMT, while during the period 2004-05 to 2013-14, procurement was 4,679 LMT. Between 2014-15 to 2024-25, the MSP amount paid to 14 kharif crops growing farmers was Rs 16.35 lakh crores, while during the period 2004-05 to 2013-14, the MSP amount paid to farmers was Rs 4.75 lakh crore.

–IANS

sps/vd