The government has increased the
minimum support price (MSP) for Paddy, the key kharif crop, by more than double
of what it did last year.
MSP for common variety paddy will be raised by Rs 200 over last year’s Rs 1,550
per quintal, the Consumer Affairs, Food and Public Distribution ministry said
in a notification. That works out a 13 percent increase for the financial year
ended March 2019 compared to a 5.4 percent increase in FY18.
In the Union Budget, the government had assured farmers of a minimum support
price of 50 percent above cost.
The MSP of Cotton (medium staple) has been increased to Rs 5,150 from Rs 4,020
and that of Cotton (long staple) to Rs 5,450 from 4,320 per quintal.
In pulses, tur MSP has been raised to Rs 5,675 per quintal from Rs 5,450, and
that of moong to Rs 6,975 per quintal from Rs 5,575. Urad MSP has been hiked to
Rs 5,600 from Rs 5,400 per quintal.
The additional bill is likely to be around Rs 33,500 crore. The added cost of
MSP is 0.2% of GDP, according to the cabinet note. The share of paddy in the
additional outgo will be around Rs 12,300 crore.