New Delhi: Announcing the government’s Budget just before the 2019 general elections, the hike in Minimum Support Price (MSP) for Kharif crops approved by Narendra Modi led government.
The MSP for paddy for 2018-19 has been hiked by Rs 200 per quintal, media quoted sources as saying.
The move to hike the MSP for Kharif crops is in line with the government’s Budget announcement of hiking the support price by one-and-a-half times of the production cost for Kharif crops.
The MSP for paddy for 2017-18 was Rs 1550 per quintal. The government had hiked the MSP for common grade paddy by Rs 80 per quintal for 2017-18
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.