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LATEST NEWS UPDATES | Centre announces hike in MSP for paddy, pulses, oilseeds -Priscilla Jebraj

Centre announces hike in MSP for paddy, pulses, oilseeds -Priscilla Jebraj

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published Published on Jun 9, 2021   modified Modified on Jun 10, 2021

-The Hindu

Farmer groups unhappy with the increase in paddy price.

The Central government has hiked the minimum support price (MSP) for common paddy to 1,940 a quintal for the coming kharif season, less than 4% higher than last year’s price of 1,868.

The decision was taken by the Cabinet Committee on Economic Affairs on Wednesday.

In a bid to encourage crop diversification, there were slightly higher increases in the MSP for pulses, oilseeds and coarse cereals. Both tur and urad dal saw the MSP rise by 300, a 5% increase to 6,300 a quintal, while the highest absolute increase was for sesamum, whose MSP rose 6.6% to 7,307. Groundnut and nigerseed saw an increase of 275 and 235 respectively. However, maize saw a minimal hike of just 20 to 1,870 a quintal.

The MSP is the rate at which the government purchases crops from farmers, and is based on a calculation of at least one-and-a-half times the cost of production incurred by the farmers. This year, the MSP for bajra was set at 85% above the cost of production, while the MSP for urad and tur will ensure 60% returns. The MSPs for the remaining crops were mostly set around the stipulated 50% above the cost of production.

The announcement comes at a time when farm unions have been protesting for more than six months on Delhi’s outskirts, demanding legislation to guarantee MSP for all farmers for all crops, and a repeal of three contentious farm reform laws.

Terming the announcement a jumla (false promise) as it did not account for the full cost of production, farmers’ groups under the Samyukt Kisan Morcha (SKM) noted that some increases, especially for maize, did not even keep pace with inflation. “There is no mechanism that guarantees that every farmer can get at least the MSP as the floor price in the market. Therefore, this is a meaningless concept as far as farmers are concerned, and that is why this movement has been asking for a statutory entitlement for all farmers so that a remunerative MSP can be ensured for all farmers,” said the SKM.

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The Hindu, 9 June, 2021, https://www.thehindu.com/news/national/centre-announces-hike-in-msp-for-paddy-pulses-oilseeds/article34769896.ece?homepage=true


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