First cabinet meeting of new government to declare MSP for kharif crops

livemint.com:

NEW DELHI : The politically sensitive matter of minimum support price (MSP) for crops in the coming sowing season will get top billing in the new government’s agenda when it takes charge, two people aware of the development said. “The MSP for kharif crops will be the first important decision that the next government will take in its cabinet meeting," the first person said. Kharif crops, or monsoon crops, are sown in June-July and harvested in October, barring Tur (arhar), a long-duration crop that is harvested in December-January.

The MSP could see a substantial increase, potentially up to 8%, the people cited above said. The development comes in the backdrop of most exit polls predicting a third consecutive term for the incumbent government with more than 350 seats for the BJP-led National Democratic Alliance (NDA). Lok Sabha election results will be announced on Tuesday.

Decisions on MSP are taken by the cabinet committee on economic affairs (CCEA), which is chaired by the Prime Minister in the second week of June every year, as the agricultural sector prepares for the sowing season with the onset of monsoon. The MSP set by the CCEA influences farmers’ crop choices. “A timely declaration of the MSP is crucial, as it motivates farmers to plan the cultivation of specific crops for the season, ensuring better yields and economic stability," the second person said.

Both persons requested not to be named. “In the last two years, several regions have experienced lower rainfall due to which the production of kharif crops was lower, especially rice and pulses like tur," said former agriculture secretary Siraj Hussain. “It is, therefore, possible that the government will give a handsome increase of 6-8% to incentivise the