Can you tell me about the MSP hikes done by the government for Kharif season?

The government jut announced the minimum support price (MSP) for the major Kharif crops for the agricultural season extending from July 2022 till June 2023. The government has gone ahead and raised minimum support prices (MSP) of kharif crops in the average range of 5% to 9%. The major hikes in the MSP were visible in pulses and oilseeds (especially in the case of moong, soybean and sunflower seed).

The government has also sharply upped the MSP for jowar. That is because, jowar is less of a water guzzler and it is also considered to be a highly nutritious and economical food. The average price hike was 5.8% but in terms of specifics the range was from 5% to 9% on the higher side3. It is estimated that this could prop up the WPI wholesale inflation by 20 bps. The challenge is that soybean and groundnuts quote above the MSP in the open market.