The Cabinet Committee on Economic Affairs (CCEA) has approved the MSP of kharif crops and the paddy by Rs 200 to Rs 1,750/quintal. The move is to honour the budget announcement to ensure that farmers get at least 1.5 times of the production cost. The move comes after Prime Minister Narendra Modi’s announcement last week that the Cabinet will approve the increase in MSP.
Prime Minister Narendra Modi said the government has fulfilled its promise of hiking the minimum support price to 1.5 times the production cost of farming produce and said the government is committed to the development of the agriculture sector.
“I am very happy that the promise made by the government to our farmer brothers and sisters of giving minimum support price at 1.5 times the production cost has been fulfilled. There has been a historic increase in the MSP. Congratulations to all farmers,” he tweeted.
The government is committed to taking all initiatives needed for the development of the agriculture sector and farmers’ welfare, he said.
“We have been taking steps in this direction and will continue to do so,” the Prime Minister said.
The massive hike in MSP of paddy and other kharif crops comes in the election year of the NDA government. In this year’s general budget, the government had announced that it would fix a support price at least 1.5 times of the cost of the production. This was the BJP’s poll promise in 2014 general elections.
Sources said the agriculture ministry has proposed higher MSP than what has been recommended by the government advisory body CACP considering growing farm distress because of fall in prices of most crops owing to bumper production, they said.
Normally, the MSP is announced just before the start of the sowing to help farmers choose the crop they want to sow. Sowing of kharif crops has begun with the onset of southwest monsoon and harvesting will start from October.
(With inputs from PTI)