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. 

Union Minister Anurag Thakur briefs the media on Cabinet decisions at National Media Centre, in New Delhi. File
| Photo Credit: PTI

The Union Cabinet on February 1 approved an investment treaty with the United Arab Emirates (U.A.E.) that is likely to significantly boost bilateral economic engagement in a range of areas, including manufacturing and foreign direct investment (FDI).

The Union Government also approved the signing and ratification of a Bilateral Investment Treaty (BIT) between India and the United Arab Emirates (U.A.E.).

The treaty is expected to improve the confidence of investors, especially large investors, resulting in an increase in foreign investments and overseas direct investment opportunities, the government said.

The pact may have a positive impact on employment generation, it said in a statement. The pact would help promote investments between the two countries.

“The Union Cabinet chaired by Prime Minister Narendra Modi today has given its approval for signing and ratification of the bilateral investment treaty between the government of India and the government of the United Arab Emirates,” it said.

“The approval is expected to increase investments in India and is likely to help in realizing the goal of Atmanirbhar Bharat by encouraging domestic manufacturing, reducing import dependence, increasing exports etc.,” it said.

The two nations have also implemented a free trade agreement in May 2022. India received an FDI of $16.7 billion between April 2000 and September 2023.