The government is expected to announce significant increases in the Minimum Support Price (MSP) for kharif crops, including paddy, pulses, oilseeds, and coarse cereals, for the 2024-25 season.
Officials noted that due to a slower rise in production compared to demand, the prices of tur and urad are currently much higher than the MSP, prompting substantial imports of these pulses. "In addition, many farmers in Maharashtra have shifted to soybean cultivation because of its higher yield and more remunerative returns compared to growing tur dal," an official stated.
Over the last three years, the average soybean yield in Maharashtra was 12 quintal/hectare, significantly higher than the 7-8 quintal/hectare for tur dal.
The MSP for soybean, which was Rs 4600/quintal in the 2023-24 season after a 7% year-on-year increase, is also expected to rise significantly to encourage higher output. Officials emphasized that the current concentration of pulses production in about 50 districts could be diversified with a higher MSP, encouraging farmers in non-growing districts to start cultivating pulses.
The increase in MSP for paddy is expected to be moderate, around 5% for the next kharif season, compared to a 7% increase last season which brought the MSP to Rs 2183/quintal.
The government aims to signal farmers to diversify into more remunerative crops like pulses and oilseeds, especially in regions like Punjab and Haryana, where paddy cultivation is prevalent.
As of June 1, the central pool held 31.98 million tonnes (MT) of rice, with the Food Corporation of India (FCI) holding 50.08 MT, including 18.12 MT of grain receivable from millers, well above the buffer norm of 13.54 MT for July 1. This surplus has prompted the government to encourage diversification.
"Concerted efforts have been made over the last few years to realign the MSP in favour of oilseeds, pulses, and coarse cereals to encourage farmers to shift larger areas under these crops and correct demand and supply imbalances," an official explained.
With the southwest monsoon's progress, the sowing of kharif crops will commence shortly.
A hike in MSP will provide farmers with remunerative prices while promoting crop diversification. The CACP's report on the price policy for kharif crops of the 2022-23 season emphasized the need to boost oilseed production through yield improvements and area expansion to achieve self-sufficiency.
"Given the import dependency in oilseeds, greater emphasis should be placed on enhancing domestic oilseed production," the report stated.
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