Prime Minister Narendra Modi had last week announced that the Cabinet will approve an increase in minimum support price (MSP) for Kharif crops to at least 1.5 times of the production cost
New Delhi: The Cabinet Committee on Economic Affairs (CCEA) is set to meet on Wednesday to approve the minimum support price (MSP) of kharif crops. According to news agency PTI, the Cabinet is likely to raise paddy MSP sharply by ₹ 200 to ₹ 1,750/quintal to honour the government’s budget announcement to ensure that farmers get at least 1.5 times of the production cost. Among 14 kharif crops, the maximum hike in the minimum support price (MSP) is likely to be in case of ragi, which is expected to be increased by Rs 900 to Rs 2,700 per quintal for 2018-19 crop year (July-June), PTI reported, citing people aware of the matter.
The new MSP regime is likely to provide relief to farmers battered by falling crop prices but will also increase the costs for the exchequer because of higher outlays for procurement of crops such as paddy, which is supplied under the subsidised public distribution system.
Last week, Prime Minister Narendra Modi had announced that the Cabinet will approve the increase in MSP to at least 1.5 times of the production cost.
Paddy is the main kharif (summer sown) crop, the sowing of which has already begun with the onset of southwest monsoon.
For the 2017-18 crop year, paddy MSP was fixed at Rs 1,550 per quintal for common grade and Rs 1,590 per quintal for Grade A variety. Sowing of kharif crops has begun with the onset of southwest monsoon and harvesting will start from October.
PM Modi on Tuesday discussed about the financial implication of the proposed procurement mechanism to ensure that farmers get MSP if market prices fall below the government’s benchmark rate. PTI, citing sources, said that senior officials of Niti Aayog made a presentation before the prime minister on the proposed procurement mechanism and its financial implication. In his Budget 2018 speech, finance minister Arun Jaitley had announced that think-tank Niti Aayog in consultation with central and state governments will put in place a mechanism to ensure farmers get benefit of the minimum support price.
The new MSP regime is likely to provide relief to farmers battered by falling crop prices but will also increase the costs for the exchequer because of higher outlays for procurement of crops such as paddy, which is supplied under the subsidised public distribution system.
Last week, Prime Minister Narendra Modi had announced that the Cabinet will approve the increase in MSP to at least 1.5 times of the production cost.
Paddy is the main kharif (summer sown) crop, the sowing of which has already begun with the onset of southwest monsoon.
For the 2017-18 crop year, paddy MSP was fixed at Rs 1,550 per quintal for common grade and Rs 1,590 per quintal for Grade A variety. Sowing of kharif crops has begun with the onset of southwest monsoon and harvesting will start from October.
PM Modi on Tuesday discussed about the financial implication of the proposed procurement mechanism to ensure that farmers get MSP if market prices fall below the government’s benchmark rate. PTI, citing sources, said that senior officials of Niti Aayog made a presentation before the prime minister on the proposed procurement mechanism and its financial implication. In his Budget 2018 speech, finance minister Arun Jaitley had announced that think-tank Niti Aayog in consultation with central and state governments will put in place a mechanism to ensure farmers get benefit of the minimum support price.