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LATEST NEWS UPDATES | Minimum support price for paddy hiked by Rs. 200 a quintal -Vikas Vasudeva & Priscilla Jebaraj

Minimum support price for paddy hiked by Rs. 200 a quintal -Vikas Vasudeva & Priscilla Jebaraj

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published Published on Jul 5, 2018   modified Modified on Jul 5, 2018
-The Hindu

The Union government looks to fulfil its poll promise of giving farmers 50 per cent more rate than their cost of production.

In keeping with the promise made in this year’s Budget speech, the Union Cabinet has approved a hike in minimum support prices (MSPs) for kharif crops so that they are 50% higher than the cost of production, not including land costs.

This includes a ?200 per quintal increase in the MSP for paddy, which is likely to inflate the food subsidy bill by over cost the government more than ?15,000 crore.

The decision was taken by the Cabinet Committee on Economic Affairs headed by Prime Minister Narendra Modi, who tweeted that this was a “historic increase.”

In a press briefing, Home Minister Rajnath Singh said the hike would boost farmers’ income and purchasing capacity, and have a positive impact on the wider economy, even as he played down fears of rising inflation due to higher food prices.

Jowar, cotton also in list

MSPs were announced for 14 commodities, with major hikes being seen in cereals such as bajra, jowar and ragi, as well as cotton.

Mr. Singh said the ?200 per quintal increase in the MSP for paddy was the highest ever such year-on-year hike in absolute terms.

However, in percentage terms, this year’s MSP of ?1,750 per quintal is only a 12.9% increase from last year’s MSP of ?1,550 per quintal.

In 2008-09 — also an election year — the UPA government had announced a 20.8% year-on-year hike in the MSP of paddy.

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The Hindu, 4 July, 2018, https://www.thehindu.com/news/national/cabinet-approves-steep-200-per-quintal-hike-in-msp-for-paddy/article24329225.ece?homepage=true


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