The Cabinet Committee on Economic Affairs has given its approval for increase in the Minimum Support Prices (MSPs) for all kharif crops of 2016-17 season. The government has hiked the MSP of common paddy by Rs 60 to Rs 1,470 per quintal for the 2016-17 kharif season while MSP for the Grade A paddy has been hiked by Rs 60 to Rs 1,510 per quintal.
Further, in order to incentivize cultivation of pulses and oilseeds, the cabinet has decided to give a bonus, over and above the recommendations of the CACP, of Rs 425 per quintal for kharif pulses, namely Arhar (Tur), Urad and Moong, a bonus of Rs 200 per quintal for Sesamum and a bonus of Rs 100 per quintal for other kharif oilseeds namely, Groundnut-in-shell, Sunflower seed, Soyabean, and Niger seed.
The decision to increase MSPs is based on the recommendations of Commission for Agricultural Costs and Prices (CACP). MSP is the rate at which the government buys the grain from farmers.