Rice MSP raised by `100; cotton by `354

The government has increased the minimum support price of paddy by Rs 100 per quintal for the current marketing season. MSP of all the kharif crops, including cotton, has been hiked.

The MSP of common paddy has been increased from Rs 1,940 per quintal to Rs 2,040, while that of Grade-A paddy has gone up from Rs 1,960 to Rs 2,060. Jowar, bajra, ragi and maize support prices too have gone up.

Pulses and oilseeds saw higher increases in MSP. Among the pulses, tur saw Rs 300 per quintal increase in MSP from Rs 6,300 last year to Rs 6,600 this year. Urad dal MSP too has been hiked from Rs 6,300 to Rs 6,600. Moong MSP too has gone up from Rs

7,275 to Rs 7,755.

Among oilseeds, groundnut MSP has gone up by Rs 300, sunflower by Rs 385, soyabean by Rs

350, sesamum by Rs 523 and nigerseed by Rs 357 per quintal.

The government has increased the MSP of cotton as well. Cotton medium staple MSP has been hiked from Rs 5,726 to Rs 6,080 and long staple from Rs 6,025 to Rs 6,380.

The higher MSP is anticipated to have an impact on prices of the commodities, especially those which have seen considerable surge in recent times. Oilseed prices have gone up significantly following the Ukrainian crisis and the rise in crude oil prices. Cotton prices have been rising despite the government intervention to curb the surge.

"Most of the agri commodities saw their prices performing well as the government announced the MSP. Increase in fertiliser cost and labour cost has led to the increase in MSP. However, MSP is expected to boost sowing sentiments," said Ajay Kedia, MD, Kedia Commodities.

Concerted efforts have been made over the last few years to realign the MSP in favour of oilseeds, pulses and coarse cereals to encourage farmers to shift larger area under these crops and adopt best technologies and farm practices to correct demand - supply imbalance, thye government said.

"The increase in MSP for kharif crops is in line with the Union Budget 2018-19 announcement of fixing the MSP at a level of at least 50 per cent over the All-India weighted average cost of production, aiming at reasonably fair remuneration for the farmers," the government said. "The return over MSP for bajra, tur, urad sunflower seed, soybean and groundnut is more than 50 per cent over the All-India weighted average cost of production.