The government of Bihar has increased Rs 250 per quintal as a bonus on procurement of paddy pushing the Minimum Support Price (MSP) to Rs 1,560 a quintal which is highest in the country. The price for purchase of paddy this year was initially fixed at Rs 1,310 per quintal. The decision to increase bonus on paddy for farmers was taken at a meeting of the state cabinet presided over by Chief Minister Nitish Kumar.
This step by state government was taken in order to encourage farmers who cultivated paddy in the state despite an adverse weather. It would also benefit those farmers who sold their paddy produce prior to this hike as additional sums would be paid to them.
Though the final figures for paddy production in the state is yet to arrive, the Bihar government expects that it might fall short of last year’s production figures.