Indian cabinet hikes MSP of Kharif crops for 2019-20 season

In a major boost to the farmers’ income, the Cabinet Committee on Economic Affairs chaired by Prime Minister Narendra Modi has approved the increase in the Minimum Support Prices (MSP) for all Kharif crops for 2019-20 Season.

The move will lead to increased investment and production through assured remunerative prices to the farmers, an official release said.

Agriculture minister Narendra Singh Tomar said higher MSP would increase investment and production. “We are determined to double the income of farmers. The increased prices will help in improving financial condition of farmers,” he said.

The increase in MSP for Kharif Crops for 2019-20 season is in line with the principle of fixing the MSPs at a level of at least 1.5 times of the all India weighted average Cost of production, which was announced in the last budget 2018-19.

For the kharif crops of 2019-20, government has increased the MSP of paddy by 3.7 per cent or Rs 65 to Rs 1,815 per quintal.

MSPs of soyabean has been increased by Rs 311 per quintal, sunflower by Rs 262 per quintal and sesamum by Rs 236 per quintal which is a major step towards increasing the income of farmers.

MSPs of tur dal has been increased by Rs.125 per quintal and urad dal by Rs.100 per quintal. This will help address the issues related to requirement of pulses in view of the need to meet the nutritional security and protein requirements of a large section of population, government said.

The MSP of Jowar has been hiked by Rs 120 per Quintal while in case of Ragi it has been hiked by Rs 253 per quintal. The move comes in the backdrop of the need to promote cultivation and consumption of nutri-cereals. Besides, India celebrated 2018 as the National Year of Millets and the Food and Agriculture Organisation (FAO) Council has approved India’s proposal to observe an International Year of Millets in 2023.

For cotton (medium staple) and cotton (long staple), the MSP has been increased by Rs. 105 per quintal and Rs. 100 per quintal respectively. The highest percentage return to farmers over their cost of production is for Bajra (85 per cent) followed by urad (64 per cent) and tur (60 per cent).

Shekhar Ghosh is consulting editor, He has edited and written for publications like Business India, Business Standard, Business Today, Outlook and many other international publications. He can be reached at

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