Biggest-Ever MSP for Paddy, Pulses in the Wait-List
This move is expected to put an additional burden of an estimated Rs 12,000 crore on account of procurement based on records of procurement in previous years. Rice procurement last year stood at over 36 million tonnes which corresponds to about 55 million tonnes of paddy.
Image for Representation. (PHOTO: GETTY IMAGES)
New Delhi: In what comes as a major relief for paddy farmers and an important announcement ahead of the 2019 polls, the Centre is set to provide the highest ever single-year raise in the minimum support price (MSP) of paddy from this Kharif season.
This also falls in line with the budgetary announcement of providing MSP worth one and a half times the cost of production.
A government source told The Indian Express that the government is considering raising the paddy MSP to the tune of about Rs 200 per quintal. The MSP for common grade of paddy was Rs 1,550 per quintal the previous year. The previous best paddy MSP hike stood at Rs 155 a quintal (including the bonus of Rs 50) a decade ago in the 2008-09 election year of UPA-I.
Like in the UPA-I, this massive hike in MSP for paddy comes in the election year of the Narendra Modi government. This hike assumes significance given that it covers the crop which constitutes over 50 per cent of the total acreage of food grain crops during Kharif season.
This move is expected to put an additional burden of an estimated Rs 12,000 crore on account of procurement based on records of procurement in previous years. Rice procurement last year stood at over 36 million tonnes which corresponds to about 55 million tonnes of paddy.
During an interaction with sugarcane farmers last week, Prime Minister Narendra Modi had promised to “approve” the implementation of 150 per cent of input cost as MSP for kharif crops during the “forthcoming meeting” of the Cabinet this week.
“I am pleased to announce that as per pre-determined principle, Government has decided to keep MSP for the all unannounced crops of kharif at least at one and half times of their production cost. I am confident that this historic decision will prove an important step towards doubling the income of our farmers,” Finance Minister Arun Jaitley had announced presenting the Budget in Parliament early this year.
This also falls in line with the budgetary announcement of providing MSP worth one and a half times the cost of production.
A government source told The Indian Express that the government is considering raising the paddy MSP to the tune of about Rs 200 per quintal. The MSP for common grade of paddy was Rs 1,550 per quintal the previous year. The previous best paddy MSP hike stood at Rs 155 a quintal (including the bonus of Rs 50) a decade ago in the 2008-09 election year of UPA-I.
During an interaction with sugarcane farmers last week, Prime Minister Narendra Modi had promised to “approve” the implementation of 150 per cent of input cost as MSP for kharif crops during the “forthcoming meeting” of the Cabinet this week.
“I am pleased to announce that as per pre-determined principle, Government has decided to keep MSP for the all unannounced crops of kharif at least at one and half times of their production cost. I am confident that this historic decision will prove an important step towards doubling the income of our farmers,” Finance Minister Arun Jaitley had announced presenting the Budget in Parliament early this year.
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