The Union Cabinet granted its approval on Wednesday for a notable rise in the minimum support price (MSP) of several key commodities for the upcoming kharif season (2023-24), including Tur, Urad, groundnut, Jowar, Bajra, and Ragi. This decision comes shortly after the government implemented stock limits on Tur and Urad to prevent hoarding due to limited availability. The MSP hike for these commodities ranges up to 10 percent.

Piyush Goyal, Minister for Food and Consumer Affairs, Commerce, and Textiles, highlighted the government’s commitment to maintaining inflation at manageable levels. He emphasized that increased procurement measures have been implemented to alleviate the burden of rising prices on the general public.

The revised MSP for groundnut sees a maximum increase of 10 percent, reaching Rs 6,357 per quintal. Tur/Arhar witnesses a 7 percent hike, reaching Rs 7,000 per quintal, while Urad sees a price increase to Rs 6,950 per quintal.

Furthermore, the MSP for Jowar, Bajra, and Ragi has been raised by 6 to 7 percent.

This move to enhance MSPs for essential commodities follows the government’s decision to remove procurement limits on Tur, Urad, and Masur, granting farmers the freedom to produce as much as they desire.

Goyal acknowledged that during the previous UPA regime, double-digit inflation was a common occurrence. However, since 2014-15, the government has managed to maintain inflation within the range of 4.5 percent, and even when it reached 7 percent, concerted efforts by the government and the RBI successfully contained it within tolerable limits.

Highlighting the government’s recognition of farmers as “annadata” or food providers, Goyal asserted that the increased MSP ensures that farmers receive a proportionate and higher rate for their produce.

When questioned about the challenges faced by oilseed farmers who claimed insufficient MSP for their crops and engaged in protests, Goyal mentioned that the central and state governments strive to support farmers whenever necessary, but did not provide a direct response.

Goyal further emphasized that the MSP hike for kharif crops in 2023-24 aims to ensure profitable prices for farmers and encourage crop diversification.

The government’s decision to raise the MSP for various commodities is expected to provide relief to farmers and contribute to the overall stability of the agricultural sector.