The government is likely to announce a sharp rise in the minimum support price (MSP) of paddy, the key kharif crop, in order to woo distressed farmers ahead of 2019 general polls. The increase in MSP may be by 13% to Rs 1,750 per quintal for the crop year 2018-19. Besides, the MSP of the other 13 kharif (summer-sown) crops are also expected to be increased sharply.
The agriculture ministry has proposed higher rate than what has been recommended by the government advisory body CACP considering growing farm distress because of fall in prices of most crops owing to bumper production. In this year’s general budget, the government had announced that it would fix a support price at least 1.5 times of the cost of the production.
Besides, about Rs 200 per quintal increase has been proposed in the MSP of paddy (common grade) for the 2018-19 crop year (July-June). For the current year, MSP of paddy has been fixed at Rs 1,550 per quintal for common grade and Rs 1,590 per quintal for Grade A variety.