CCEA likely to increase Minimum support price (MSP) of Kharif crops
The Cabinet Committee on Economic Affairs (CCEA) is likely to raise the minimum support price (MSP) of paddy by Rs 200 to Rs 1,750 per quintal, here on Wednesday.
It will ensure farmers get at least 1.5 times of the production cost.
As per sources, Minimum Support Price (MSP) of other kharif crops is also expected to rise. It is more likely to cost exchequer around 15,000 crore. Paddy MSP for the year 2017-2018 was fixed at Rs, 1550 per quintal for common grade whereas 1,590 per quintal for Grade A variety.
With this move, the government is trying to make improvements before the upcoming polls in Madhya Pradesh, Chhattisgarh and Rajasthan. Also, Prime Minister Narendra Modi told the delegation of farmers that they would be approving the implementation of MSP of 150 % on Kharif Crops.
Due to Financial burden, the announcement of increase in MSP for Khraif crops has been delayed and the sowing which has already begun. The Agriculture Ministry has proposed higher rates than Commission for Agricultural Costs and prices and also suggests paying compensation for the losses due to fall in price.