Government Announces New Policies to Boost Farmer’s Income with Better Prices for Mustard, Sunflower, and Groundnut Crops

Key Highlights

• Import duty on edible oils increased from 0% to 20%.
• Removal of minimum export duty on Basmati rice.
• Export duty on onions reduced from 40% to 20%.
• Basic duty on refined oil increased to 32.5%.
• Soybean MSP set at Rs 4,892 per quintal for 2024-25.

The central government is taking significant steps to improve the income of farmers by ensuring they receive better prices for their crops, especially mustard, sunflower, and groundnut. These measures aim to strengthen the agricultural sector and bring financial benefits to farmers across India.

Also Read: Centre to Invest ₹6,000 Crore in AI and Drones for Smart Farming

Key Decisions for Farmers Welfare

In an effort to uplift farmers, the government has increased the import duty on edible oils, which was previously at 0%. This has now been raised to 20%. This move is expected to reduce the reliance on imported oils, boosting demand for locally grown oilseeds. As a result, Indian farmers will receive better prices for their oilseed crops, significantly increasing their income. Apart from this, several other pro-farmer decisions have been taken by the government.

How Increased Import Duty on Edible Oils Will Help Farmers

With the increase in import duty on edible oils, the total effective duty now stands at 27.5%. This will encourage the edible oil manufacturers to purchase crops like soybean from local farmers, ensuring that they get fair prices for their produce. Moreover, the production of soybean cake will increase, enhancing the export opportunities for India. States like Maharashtra and Madhya Pradesh, where oilseed farming is prominent, are expected to see major benefits from this policy.

Removal of Minimum Export Duty on Basmati Rice

The government has also removed the minimum export duty on Basmati rice, which is great news for Basmati farmers. This will enable farmers to fetch better prices for their produce and boost the export demand for Basmati rice. India is the world's largest exporter of Basmati rice, and this decision will especially benefit farmers in states like West Bengal, Uttar Pradesh, and Punjab.

Also Read: Paddy Procurement to Begin on September 23: Key Details for Farmers in the State

Export Duty on Onion Reduced for Farmers Benefit

In another farmer-friendly move, the government has also reduced the export duty on onions from 40% to 20%. This reduction is expected to help the onion farmers by offering them better market prices and expanding onion exports. Maharashtra and Madhya Pradesh, being the largest producers of onions, will see the greatest advantage from this policy.

The impact of this decision is already visible in the market, with onion prices increasing by Rs 10 per kilogram. India exports onions to neighboring countries like Bangladesh and Pakistan, making it a key commodity for both domestic and international markets.

Basic Duty on Refined Oil Increased to 32.5%

To further support oilseed farmers, the central government has increased the basic duty on refined oil to 32.5%. This will increase the demand for oilseed crops such as mustard, groundnut, and sunflower, ensuring that farmers get better prices for their crops. Additionally, the increase in small and rural refineries will also create more employment opportunities, particularly for the youth in rural areas.

Concerns Over Soybean Prices

Despite these efforts, some farmers are worried about the falling prices of soybeans in the market. In response, the government has approved the purchase of soybeans at the Minimum Support Price (MSP). However, farmers in Madhya Pradesh have expressed concerns, urging the government to buy their soybean crop at Rs 6,000 per quintal.

The government has clarified that soybeans will be purchased at the MSP fixed for the crop year 2024-25, which is set at Rs 4,892 per quintal. Farmers have been requested to avoid rumors and trust the government’s process to ensure fair compensation for their crops.

Also Read: SUBHADRA Scheme Launched: Rs 50,000 Financial Support for Women Over 5 Years

CMV360 Says

The central government’s recent decisions are focused on improving the financial condition of farmers by ensuring they receive better prices for key crops like mustard, sunflower, groundnut, and soybean. Through these policies, the government aims to enhance agricultural productivity, boost exports, and create employment opportunities in rural areas, ultimately benefiting millions of farmers across the country.

These steps reflect the government's ongoing efforts to support the agricultural sector and improve farmer's livelihoods. The decisions to increase import duties, reduce export duties, and adjust MSP rates will play a crucial role in boosting the income of farmers and securing a brighter future for Indian agriculture.