Cabinet Clears Higher MSP For Kharif Crops

1. Cabinet Clears Higher MSP For Kharif Crops Cabinet Clears Higher MSP For Kharif Crops On Wednesday, the Union Cabinet Committee on Economic Affairs released updated minimum support prices (MSPs) for various kharif crops. Rice MSP Hike Rice MSP Hike According to Union Minister of Food, Consumer Affairs, Commerce, and Public Distribution Piyush Goyal, the decision to increase the MSP of rice, the primary summer staple, by 7% to 2,183 per quintal (100kg) for the common variety, was approved by the Cabinet, which is presided over by Prime Minister Narendra Modi. MSP was increased to $2,203 per quintal for the grain variety designated as "Grade A". The Union Cabinet increased federally fixed minimum support prices (MSPs) on Wednesday to the highest increase in five years for crops grown by millions of farmers for the summer-sown (kharif) season of 2023–24. This move comes ahead of assembly elections in important states and amid weak rural demand. Due to the effects of extreme weather on farming in 2022–2023, cereal inflation in the nation continues to be in double digits. Reasons Reasons The goal of raising paddy rates is to increase grain production in the largest exporter in the world. In order to increase domestic supplies and lower prices, India imposed a 20% tariff on non-basmati rice exports in November 2022. However, there were concerns that this measure might encourage some farmers to leave the crop.

2. Due to the adverse effects of the extreme weather on farming in 2022–2023, cereal inflation in the nation continues to be in double digits. An official stated, "The government is not thinking of lifting export restrictions on rice at this time, but a call will be taken to revisit the policy when appropriate. If rice production is high in 2023–2024 and export restrictions are maintained, market prices will probably decline as a result. According to BV Krishna Rao of the Rice Exporters' Association, the current tariff combined with a glut could make India's export of the grain quite uncompetitive in international markets. As rural demand for goods like motorcycles and so-called fast moving consumer goods (FMCGs) continues to lag, the announcement of higher MSPs comes months before elections in Telangana, Madhya Pradesh, Rajasthan, and Chhattisgarh. One explanation for this is thought to be inflation. Climatic Conditions Climatic Conditions Nevertheless, this year brings a new danger to the rural economy. Monsoon season, which typically begins on June 1 and is crucial to India's agricultural output, has been postponed. The third-largest economy in Asia depends on the rain-bearing system because it is essential for producing electricity and drinking water. The likelihood of an El Nino weather pattern disrupting the monsoon in 2023 has alarmed both the government and food producers. El Nino has wide-ranging effects on the planet, causing everything from heavier rains in the Americas to dry, hot summers in India. Due to better-than-expected winter harvests, the nation's food stocks are regaining adequate levels after last year's shortages and skyrocketing prices. Changes In Rates Of Pulses And Millets Changes In Rates Of Pulses And Millets The output of some lentil varieties decreased in 2022–2023, prompting the Cabinet to increase floor rates for a variety of pulses while enforcing strict price controls. The benchmark price for tur (pigeon pea), another important variety of lentil, was increased to 7,000 per quintal, up 6.6% from the previous year, while the MSP for moong (green gram), a significant variety of pulses, was increased by 10.4% to 8,558 per quintal for the 2023–24 season. The groundnut MSP increased by 9% to $6,357 per quintal. The MSP for sunflower increased 5.6% from 6,400 to 6,760 per quintal, among other important oilseeds. Sesame seed prices have increased by 10.2%, from 7,830 per quintal in 2022–2023 to 8,635 per quintal in 2023–2024. In response to the Modi administration's push to increase the output of coarse cereals, the government increased the floor rates for major millets by 6–7%.

3. While Goyal, the minister of food, claimed that the MSP increases would increase farm incomes, some analysts claimed that input costs were increasing more quickly than MSPs. The increases in MSP hardly cover rising input costs incurred by farmers for labor, pesticides, and diesel. A farm economist at Lucknow University named Sudhir Panwar added that MSP is merely symbolic for most commodities other than paddy because the government either doesn't buy them or buys them in insignificant amounts. If you are a rice importer wishing to buy rice in bulk or a Rice Exporter willing to export bulk rice, then Tradologie.com is the right platform for you. Tradologie is a Software as a Service platform that facilitates bulk agro-trade across the globe. Through Tradologie’s interface, buyers can avail the best qualities of agro-commodities at negotiable rates. The transaction-oriented platform has 600,000+ verified buyers and about 70,000+ registered sellers of agro-commodities from over 150 countries. To register as a buyer, click here. To register as a seller, click here. To stay updated with the latest happenings in the agro-trade industry, follow Tradologie.com across all social media channels.