July 04, 2018: CCEA today hiked the minimum support price for paddy by a record 200 rupees per quintal. Briefing about the decision in New Delhi, Home Minister Rajnath Singh said the cabinet has approved the MSP of 14 Kharif crops for the 2018-19 season. The government’s price advisory body CACP has calculated production cost of paddy at 1,166 rupees per quintal. The Minister said the government has raised the MSP of paddy (common grade) by 200 rupees to 1,750 rupees per quintal for 2018-19 season.
The support price of Grade A variety of paddy has been raised by 180 rupees per quintal to 1,770 rupees. The increase in paddy MSP is 50-51 per cent over its production cost. Mr Singh said this will send a positive message to farmers and boost their confidence and end farm distress. Terming it as a historic decision, the minister said the sharp increase in MSP was done after lot of consideration and not in hurry. The hike in the MSP will cost the exchequer over 15,000 crore rupees.
The decision will increase the income of farmers and purchasing capacity, which will have impact on wider economic activity. Replying to a queries on likely impact of MSP hike on price rise, Mr Singh said, government has controlled inflation in last four years and will succeed in controlling it in future as well as.
The MSP of cotton (medium staple) has been raised to 5,150 rupees from 4,020 rupees and that of cotton (long staple) to 5,450 from 4,320 rupees per quintal.
In pulses, tur MSP has been raised to 5,675 per quintal from 5,450 rupees, and that of moong to 6,975 per quintal from 5,575 rupees. Urad MSP has been hiked to 5,600 from 5,400 rupees per quintal.
Among oilseeds, MSP of soyabean has been increased to 3,399 rupees per quintal from 3,050 rupees while that of groundnut (shell) to 4,890 rupees per quintal from 4,450.
Government today hiked the minimum support price for paddy by 200 rupees per quintal. The Cabinet Committee on Economic Affairs also approved the increase in MSP of 14 Kharif crops.
Briefing media in New Delhi after the meeting of the Union Cabinet, Home Minister Rajnath Singh said, the MSP of paddy (common grade) has been increased by 200 rupees to 1,750 rupees per quintal, while that of Grade A variety by 180 rupees per quintal to 1,750 rupees. MSP of Moong increased by 1400 rupees per quintal to 6975 rupees.
The MSP of medium staple cotton has been increased to 5,150 rupees from 4,020 rupees and that of long staple cotton to 5,450 rupees from 4,320 rupees per quintal.
In pulses, MSP of Tur has been raised by 225 ruppese to 5,675 rupees per quintal from 5,450 and that of Moong to 6,975 per quintal from 5,575 rupees. Urad MSP has been hiked by 200 rupees to 5,600 from 5,400 rupees per quintal.
Prime Minister Narendra Modi had assured farmers during an interaction last Friday that the Centre will approve the higher Minimum Support Price for Kharif crops. Paddy is the main kharif crop, the sowing of which has already begun with the onset of southwest monsoon. (AIR News)
