In a major decision, the Union Cabinet has approved a minimum support price of at least cost plus 50% for 14 crops ahead of the Kharif (summer) sowing season. The minimum support price of paddy has been increased by Rs 117, Information and Broadcasting Minister Ashwini Vaishnaw said at a Cabinet briefing on Wednesday.
A legal guarantee for minimum support price (MSP) has been a long-standing demand of farmers who have staged large-scale protests, including some held earlier this year, to press for it. The MSP decision is also significant because it comes ahead of Assembly polls in states like Haryana, Maharashtra and Jharkhand, which are scheduled to be held later this year.
“Prime Minister Narendra Modi has always given preference to farmers. The first decision in the third term was taken for farmers. In today’s Cabinet meeting also, a very important decision was taken for the welfare of farmers. The Kharif season is beginning and the Cabinet has approved a minimum support price of 14 crops for the season,” Mr Vaishnaw said.
“In the 2018 Union Budget, the government of India had taken a clear policy decision that the MSP has to be at least 1.5 times the cost of production. Today’s decision is in line with this principle. The cost has been established in a scientific manner and is based on a study by the Commission for Agricultural Costs and Prices in various districts and tehsils across the country,” he added.
The MSP for paddy for the season has been increased by 5.35%, or Rs 117, to Rs 2,300 per quintal and, as a comparison, the minister said the price was 1,310 in 2013-14.
