Paddy MSP to go up by ₹200, cotton ₹1,130

NEW DELHI: The Cabinet on Wednesday announced higher minimum support prices (MSPS) for 14 crops, setting each of these at a minimum of 1.5 times the cost of cultivation, as the Bharatiya Janata Party (Bjp)-led National Democratic Alliance (NDA) government seeks to address distress in the agrarian economy and ensuing farmers’ protests.

The higher support prices — the biggest increase in the present government’s tenure — are likely to increase government expenses by ₹15,000 crore, home minister Rajnath Singh said.

For the 2018-19 crop season, the MSP for paddy, the main crop planted during the ongoing kharif (summer) season, has been fixed at ₹1,750 per quintal, 13% higher than last year. This is the steepest hike since 2012-13, when the increase was 15.7%.

The MSP for paddy has been increased by ₹200 in absolute terms, which constitutes a 50% raise over input costs, or costs of cultivation, of ₹1,166.

To woo distressed farmers, the government had assured farmers in the Budget for 2018-19 that it would increase MSPS for the summer-sown season so that

It is for the first time since Independence that such massive hike in MSP has been effected by any government. ML KHATTAR, Haryana CM

they get 50% returns over cost.

A crash in the prices of several farm commodities, especially pulses and oilseeds, in recent months has led to distress in the rural economy and triggered farmers’ protests in several states. Farmers have earned negative returns on many crops amid record harvests. The MSP hikes also come ahead of elections due in Bjp-ruled states like Madhya Pradesh, Chhattisgarh and Rajasthan later this year.

“Farmers weren’t getting adequate returns. They were naturally dissatisfied. Our prime minister understood this. That is why we have taken this historic decision,” Singh said, briefing reporters on the decision.