The Cabinet Committee on Economic Affairs, under the leadership of Prime Minister Shri Narendra Modi, has taken a significant step to boost the agricultural sector in India. In a move to ensure remunerative prices for farmers and promote crop diversification, the government has approved a substantial increase in the Minimum Support Prices (MSP) for all mandated Rabi Crops for the Marketing Season 2024-25. This bold decision is a part of the government’s commitment to empower farmers, enhance food security, and reduce dependency on imports.

Overview

The Minimum Support Prices (MSP) for Rabi Crops have been increased to benefit the farming community and ensure they receive fair compensation for their hard work. The latest MSP revisions for the Marketing Season 2024-25 encompass various key crops, reflecting the government’s commitment to supporting the agriculture sector. These MSP revisions are aligned with the Union Budget 2018-19’s commitment to set MSPs at a minimum of 1.5 times the All-India weighted average Cost of Production. The government has achieved this goal, and it is expected to benefit farmers across the nation significantly. 

Key points

1. Here is an overview of the MSP revisions and their significance

• • Wheat: The MSP for wheat has been increased to Rs. 2275 per quintal, marking a substantial rise from the previous year. This ensures a margin of 102 percent over the cost of production, offering an attractive incentive for wheat cultivation.
  • Barley: Barley growers will benefit from an increased MSP of Rs. 1850 per quintal, with a margin of 60 percent over the cost of production. This is an encouraging move to promote barley cultivation.
  • Gram: Gram farmers will receive an MSP of Rs. 5440 per quintal, with a 60 percent margin over the cost of production, making it a lucrative option for growers.
  • Lentil (Masur): Lentil cultivation sees a significant boost with an MSP of Rs. 6425 per quintal, offering a substantial 89 percent margin over the cost of production, ensuring an attractive return for farmers.
  • Rapeseed & Mustard: The MSP for rapeseed and mustard has been raised to Rs. 5650 per quintal, with a remarkable margin of 98 percent over the cost of production, making it a financially rewarding choice.
  • Safflower: Safflower cultivation becomes more attractive with an MSP of Rs. 5800 per quintal, providing a 52 percent margin over the cost of production.

2. Empowering Farmers: The increased MSP ensures that farmers receive fair and remunerative prices for their crops, improving their livelihoods and financial security.

3. Crop Diversification: The government’s focus on promoting oilseeds, pulses, and millets encourages crop diversification. This diversification is vital for enhancing food security, reducing import dependency, and increasing farmers’ income.

4. Reducing Import Dependency: By increasing the MSP for crops like oilseeds and pulses, the government aims to reduce India’s dependence on imports, contributing to self-sufficiency in these essential agricultural commodities.

5. Promoting Crop Diversification and Food Security: The government is actively promoting crop diversification through initiatives like the National Food Security Mission (NFSM), which focuses on increasing the production of rice, wheat, pulses, and oilseeds. Additionally, the Pradhan Mantri Krishi Sinchayee Yojana (PMKSY) emphasizes efficient water management and irrigation practices to enhance crop productivity. The National Mission on Oilseeds and Oil Palm (NMOOP) aims to reduce the country’s dependence on oil imports by boosting the production of oilseeds and oil palm.

6. Empowering Farmers through Technology and Information: The government is empowering farmers with technology and information through initiatives such as the Kisan Credit Card (KCC) Scheme, KCC Ghar Ghar Abhiyaan, Kisan Rin Portal (KRP), and Weather Information Network Data Systems (WINDS). These efforts aim to provide easy access to credit, streamline the process of accessing financial assistance, extend financial tools to every household, and offer timely and accurate weather information for informed decision-making by farmers.

Conclusion

The government’s approval of increased Minimum Support Prices for Rabi Crops for the Marketing Season 2024-25 is a significant step towards empowering farmers and ensuring food security. These MSP revisions are in line with the government’s commitment to provide fair compensation to farmers and promote crop diversification. By focusing on oilseeds, pulses, and millets, the government aims to enhance farmers’ income and reduce India’s dependence on imports. Additionally, initiatives like the Kisan Credit Card Scheme and WINDS provide financial support and crucial information to farmers, further improving their lives and the overall agriculture sector in the nation. These measures collectively aim to revolutionize agriculture and enhance the well-being of farmers, ultimately contributing to the growth and prosperity of the agricultural community in India.

The “Ghar-Ghar KCC Abhiyaan” is a groundbreaking initiative in India, spearheaded by Secretary (Fisheries) Dr. Abhilaksh Likhi, to revolutionize financial inclusion and support for the fisheries sector. This transformative campaign aims to provide every eligible fisher and fish farmer with easy access to the Kisan Credit Card (KCC), an essential financial tool. The pivotal meeting, attended by key stakeholders, emphasized the need to reduce KCC application rejections, fast-track approvals, and create awareness of RBI guidelines. The collaborative effort is set to address challenges, boost awareness, and empower the fisheries sector, contributing to India’s economic growth and the welfare of those working in its waters.The meeting was a congregation of senior officers representing various States and Union Territories, the Reserve Bank of India (RBI), the National Bank for Agriculture and Rural Development (NABARD), Scheduled Commercial Banks, the Department of Agriculture & Farmers Welfare, Regional Rural Banks (RRBs), the Department of Agriculture & Farmers Welfare, and State Level Bankers Committees (SLBCs).

Overview

The “Ghar-Ghar KCC Abhiyaan” is a revolutionary initiative aimed at enhancing financial inclusion and support for the fisheries sector in India. Chaired by Secretary (Fisheries) Dr. Abhilaksh Likhi, a pivotal meeting brought together senior officers from various States and Union Territories, along with representatives from the Reserve Bank of India (RBI) , Scheduled Commercial Banks, the Department of Agriculture & Farmers Welfare, State Level Bankers Committees (SLBCs), the National Bank for Agriculture and Rural Development (NABARD) and Regional Rural Banks (RRBs). This ambitious campaign strives to ensure that every eligible fisher and fish farmer has seamless access to the Kisan Credit Card (KCC) facility. The meeting highlighted the importance of reducing KCC application rejections, fast-tracking approvals, and increasing awareness of RBI guidelines for eligibility. Here’s a brief overview of this groundbreaking initiative:

Key Points

1. Dr. Abhilaksh Likhi’s Vision: Dr. Abhilaksh Likhi, Secretary (Fisheries), spearheads the “Ghar-Ghar KCC Abhiyaan” and emphasizes the need to expand the KCC facility throughout the entire fisheries value chain. His vision is to cover every eligible individual and drive efforts to minimize KCC application rejections.
2. Special KCC Campaign during Sagar Parikrama: Dr. Likhi commended the success of the Special KCC campaign during Sagar Parikrama, urging all stakeholders to collaborate for the successful execution of the “Ghar-Ghar KCC Abhiyaan.”
3. Aims and Objectives: Shri Sagar Mehra, Joint Secretary of the Department of Fisheries (DoF), discussed the goals of the ‘Ghar-Ghar KCC Abhiyaan.’ He emphasized the importance of active participation from States/UTs and banks for its successful implementation. The campaign’s primary aim is universal financial inclusion for fish farmers, ensuring they have unrestricted access to credit facilities.
4. Issues Addressed: Shri Mehra highlighted the issues faced by beneficiaries, including documentation and bank procedures, as reported by States and Union Territories. Notably, KCCs worth Rs 1746.16 Crore have been sanctioned to 1,59,903 fishers and fish farmers.
5. Importance of RBI Guidelines: The Joint Secretary emphasized the need to raise awareness about the latest RBI guidelines regarding KCC eligibility for fishers, ensuring that the eligible beneficiaries can avail themselves of its benefits.
6. Corrective Measures: A concerted effort was discussed to analyze the rejection of KCC applications and to implement corrective measures by banks and other stakeholders. This is essential to ensure that the maximum number of beneficiaries can access this crucial financial tool.
7. Challenges from States/UTs: Participants from various States and Union Territories raised concerns related to mobilizing applications, eligibility criteria, credit limits, and documentation. They pledged their full cooperation to the ongoing “Ghar-Ghar KCC Abhiyaan.”
8. Commitment from Stakeholders: NABARD, Scheduled Commercial Banks, the Department of Agriculture & Farmers Welfare, State Level Bankers Committees (SLBCs), Regional Rural Banks (RRBs), and the RBI have pledged their dedicated efforts towards prioritizing the “Ghar-Ghar KCC Abhiyaan” for the fisheries sector. Their collective aim is to ensure that every eligible fisher and fish farmer benefits from KCC facilities, achieving maximum saturation.

Conclusion

The “Ghar-Ghar KCC Abhiyaan” stands as a monumental step towards empowering the fisheries sector by ensuring easy access to the Kisan Credit Card. This transformative initiative promises financial inclusion, support, and a brighter future for fisheries and fish farmers across India. By addressing challenges, promoting awareness, and working collaboratively, it aims to unlock the potential of this vital sector, contributing to the nation’s economic growth and the well-being of those who toil in its waters.The ‘Ghar-Ghar KCC Abhiyaan’ is not just a financial initiative but a transformative force that aims to uplift the lives of fish farmers across the country. With the collective efforts of the government, financial institutions, and the dedicated fish farmers, we are on the brink of a brighter and more prosperous future for the fisheries sector.

In a pivotal move aimed at bolstering domestic onion availability and controlling skyrocketing prices, the Government of India has implemented a strategic measure. Effective from the 29th of October 2023 until the 31st of December 2023, a Minimum Export Price (MEP) of USD 800 per ton has been imposed on onion exports. This decision comes as a robust effort to discourage the export of onions and maintain a steady supply within the domestic market. The repercussions of this bold initiative have already been felt in the vibrant agricultural landscape of Maharashtra, where onion prices have witnessed a remarkable correction. In the past week, prices have shown a significant decline, ranging from 5% to 9% compared to their previous highs.

Overview

This move by the Indian government signifies a proactive stance to strike a balance between serving the needs of the local population and safeguarding the interests of the farming community. The Department of Consumer Affairs has taken up the mantle of closely monitoring onion exports and pricing on a daily basis. Their primary objective is to ensure stable prices and consistent availability for the consumers across the country. 

With November approaching and the holiday season accelerating demand, the department has initiated the release of onion buffer stocks into the market. This allocation includes sales via traditional mandis as well as special discounted sales to retail consumers in areas with soaring prices. As part of this strategy, a network of 685 mobile retail outlets spanning over 170 cities has been established, making onions more accessible and affordable to the masses.In addition to this, National Agricultural Cooperative Marketing Federation (NAFED) and National Cooperative Consumers’ Federation of India (NCCF) have sprung into action by procuring an additional 2 Lakh Metric Tons (LMT) of onions from the recent kharif harvest. This procurement is strategically targeted at distribution in regions where onion prices tend to surge, thereby maintaining price stability and safeguarding consumer interests. 

Key Points

1. Price Correction in Maharashtra: Within a week of implementing the Minimum Export Price, onion prices in Maharashtra have witnessed a decline of 5% to 9% from their recent peak. The weighted average price across all markets in the state has dropped by 4.5%, indicating the effectiveness of this policy in regulating prices.
2. Daily Monitoring by the Department of Consumer Affairs: The Department of Consumer Affairs is actively monitoring onion exports and prices on a daily basis. This vigilant approach ensures that domestic onion prices remain stable and that consumers can access this essential ingredient without substantial price fluctuations.
3. Buffer Stock Release: Anticipating increased demand in November, the Department has initiated the release of onion buffer stock into the market. These onions are made available through both mandi (wholesale market) sales and discounted retail sales in areas with high onion prices. This proactive measure aims to provide consumers with affordable onions and protect their interests.
4. Mobile Retail Outlets: To further enhance accessibility, retail sales are being conducted through 685 mobile retail outlets, which cover over 170 cities. This initiative is a significant step in making onions more accessible to urban and semi-urban consumers, mitigating the impact of price fluctuations.
5. Procurement by NAFED and NCCF: National Agricultural Cooperative Marketing Federation (NAFED) and National Cooperative Consumers’ Federation (NCCF) have launched procurement efforts to secure an additional 2 lakh metric tons (LMT) of kharif harvest onions. These onions will be distributed in areas with high onion prices, ensuring that consumers are not burdened by steep costs and that onion prices remain under control.
6. Price Stability: The immediate decline in onion prices due to export restrictions can be a concern for farmers who rely on the international market. However, the government’s buffer stock and procurement efforts aim to stabilize prices, ensuring that farmers continue to receive a fair value for their produce.
7. Sustainable Production: By controlling exports, the government intends to enhance domestic availability. This approach encourages farmers to focus on sustainable production for the domestic market, safeguarding their livelihoods.
8. Consumer Accessibility: The release of buffer stock and discounted retail sales, particularly through mobile outlets, expands the reach of farmers’ produce, ensuring that consumers can access onions without facing exorbitant prices.
9. Collaboration with Cooperatives: Farmers’ interests are further protected through the procurement efforts led by NAFED and NCCF. These cooperatives work in tandem with the government to ensure that farmers are not left with unsold produce, and prices remain reasonable.

Conclusion

The Government of India’s recent decision to impose a Minimum Export Price on onions is a significant step towards stabilizing onion prices and ensuring their availability to consumers. By actively monitoring prices, releasing buffer stocks, expanding retail access, and collaborating with cooperatives, the government is safeguarding the interests of both farmers and consumers. This approach not only addresses the immediate concerns of onion prices but also lays the foundation for a more sustainable and stable onion market in India. As the nation continues to celebrate its culinary diversity, this policy ensures that the flavor of India remains accessible to all.