India Government hiked minimum support price (MSP) of paddy marginally by Rs 53 per quintal to Rs 1,868 per quintal for 2020-21 crop year, while the rates for oilseeds, pulses and cereals were also raised.
The decision, taken by the Cabinet headed by Prime Minister Narendra Modi, will help farmers take a call on which kharif (summer) crop to grow as sowing picks up with the arrival of southwest monsoon.
The Met Department has projected normal monsoon during the June-September period.
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“Based on the recommendation of the Commission for Agricultural Costs and Prices (CACP), the cabinet has approved MSP of 14 crops. Paddy (common) MSP has been increased to Rs 1,868 per quintal for this year,” Agriculture Minister Narendra Singh Tomar told media after the meeting.
He said the increase in support price of paddy will ensure 50 per cent return over the cost to the farmers, he said.
The MSP of Grade A variety of Paddy has been increased to Rs 1,888 per quintal for 2020-21 crop year from 1,835 per quintal last year.
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In an official statement, the government said the support price of cotton (medium staple) has been increased by Rs 260 per quintal to Rs 5,515 per quintal for 2020-21 from Rs 5,255 per quintal last year.
The support price of cotton (long staple) has been increased to Rs 5,825 per quintal from Rs 5,550 per quintal in the said period, it added.