Government approves hike in MSP for Kharif crops
To fulfill its commitment of supplementing farmers’ income and address rising distress among farmers, the government on Wednesday announced an increase in MSP of 14 crops sown in the summer season. Among these crops were paddy and cotton that saw a hike of 13 per cent and 28 per cent respectively.
The decision, taken by the Cabinet Committee on Economic Affairs headed by Prime Minister Narendra Modi, comes less than a year before the next general election.
The previous highest increase in paddy MSP was Rs 170 a quintal in the 2012-13 the election year of the second United Progressive Alliance government led by Congress.
In the last four years, the National Democratic Alliance led by BJP government has raised the paddy MSP between Rs 50 and Rs 80 per quintal.while the BJP had promised in 2014 to give farmers a price of 1.5 times of cost, an announcement to give effect to the promise was made in the government’s fifth and final annual Budget presented on February 1 this year.
Home Minister Rajnath Singh said the cabinet has approved the MSP of 14 kharif (summer-sown) crops for the 2018-19 season.
The government’s price advisory body CACP has calculated production cost of paddy at Rs 1,166 per quintal and the government has raised the MSP of paddy (common grade) by Rs 200 to Rs 1,750 per quintal for 2018-19 season, he said.The support price of Grade A variety of paddy has been raised by Rs 180 per quintal to Rs 1,770. The increase in paddy MSP is 50-51 per cent over its production cost.”This will send a positive message to farmers and boost their confidence and end farm distress,” Singh said.Enhanced MSP will provide income support to farmers, boost production, encourage investment, reduce import bill and improve nutritional security.