Centre approves MSP for 14 Kharif crops; support price for paddy hiked by 5.35%

The hike in paddy support price comes despite the government sitting on surplus rice stocks, but it is significant ahead of elections in states like Haryana, Maharashtra, Jharkhand, and Delhi.
Farmers engage in paddy transplantation on a terraced field. in Odisha.
Farmers engage in paddy transplantation on a terraced field. in Odisha.FILE Photo | Express

The Union Cabinet on Wednesday announced the minimum support price (MSP) for 14 Kharif season crops, including paddy, ragi, bajra, jowar, maize and cotton, which will have a financial implication of Rs two lakh crore for the government and entail a gain of Rs 35,000 crore to farmers over the previous year.

It also raised the minimum support price (MSP) for paddy by 5.35 percent to Rs 2,300 per quintal for the 2024–25 kharif marketing season.

Addressing the media after a meeting of the union cabinet, Information and Broadcasting Minister Ashwini Vaishnaw said that the third term of PM Modi is very important as it focuses on continuity with change through many decisions for farmers's welfare."

"The Cabinet has approved the Minimum Support Price (MSP) on 14 Kharif season crops, including paddy, ragi, bajra, jowar, maize and cotton. With today's decision, the farmers will get around Rs two lakh crores as MSP. This is Rs 35,000 crore more than the previous season," he said.

Vaishnaw said the two terms of the Modi government had laid a strong foundation for economic growth and significant decisions would be taken in the third term for the benefit of people.

The minister said the government is committed to providing price to farmers at 50 percent more than the input cost and the decisions were aligned to that objective.

The MSP for 'common' grade paddy has been raised by Rs 117 to Rs 2,300 per quintal, while for the 'A' grade variety, it has been hiked to Rs 2,320 per quintal for the upcoming kharif season, Vaishnaw told reporters.

The hike in paddy support price comes despite the government sitting on surplus rice stocks, but it is significant ahead of elections in states like Haryana, Maharashtra, Jharkhand, and Delhi.

Vaishnaw said the government had a clear policy decision taken in the 2018 Union Budget that MSP should be at least 1.5 times the cost of production, and this principle was followed in the latest MSP hike.

The cost was scientifically calculated by CACP, he added.

The Food Corporation of India currently holds a record stockpile of around 53.4 million metric tonnes of rice, which is four times the required buffer for July 1 and sufficient to meet demand under welfare schemes for one year without any fresh procurement.

Despite lower rainfall of about 20 percent across the country since the start of the monsoon season on June 1, weather conditions are now favourable for further advancement of the rains, according to the meteorological department.

The highest absolute increase in MSP over the previous year has been recommended for oilseeds and pulses.

After being sworn in as PM for the third time, Prime Minister Narendra Modi signed his first file authorising the release of the 17th installment of PM Kisan Nidhi, reflecting the commitment of the government towards farmer welfare.

At an event in Varanasi on Tuesday, PM Modi released the 17th instalment amounting to more than Rs 20,000 crores to around 9.26 crore beneficiary farmers under the Pradhan Mantri Kisan Samman Nidhi (PM-KISAN) through Direct Benefit Transfer.

Govt raises paddy MSP by Rs 117 to Rs 2,300 per quintal for 2024-25 .

New Delhi, Jun 19 (PTI) The government on Wednesday raised the minimum support price (MSP) for paddy by 5.

35 per cent to Rs 2,300 per quintal for the 2024-25 kharif marketing season.

The hike in paddy support price comes despite the government sitting on surplus rice stocks, but it is significant ahead of elections in states like Haryana, Maharashtra, Jharkhand, and Delhi.

Announcing the MSP increase, Information and Broadcasting Minister Ashwini Vaishnaw said the cabinet has approved the minimum support prices for 14 kharif (summer) crops based on recommendations from the Commission for Agricultural Costs and Prices (CACP).

The MSP for 'common' grade paddy has been raised Rs 117 to Rs 2,300 per quintal, while for the 'A' grade variety it has been hiked to Rs 2,320 per quintal for the upcoming kharif season, Vaishnaw told reporters.

This is the first cabinet decision taken in Prime Minister Narendra Modi's third term in office, the minister said.

Vaishnaw said the government had a clear policy decision taken in the 2018 Union Budget that MSP should be at least 1.5 times the cost of production, and this principle was followed in the latest MSP hike.

The cost was scientifically calculated by CACP, he added.

The Food Corporation of India currently holds a record stockpile of around 53.4 million tonnes of rice, which is four times the required buffer for July 1 and sufficient to meet demand under welfare schemes for one year without any fresh procurement.

Despite lower rainfall of about 20 percent across the country since the start of the monsoon season on June 1, weather conditions are now favourable for further advancement of the rains, according to the meteorological department.

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