The Union cabinet on Wednesday raised the government-mandated price for summer-sown crops such as rice and cotton by the most in five years as Prime Minister Narendra Modi looks to woo millions of farmers ahead of the Lok Sabha polls next year.
The government on Wednesday announced an increase of Rs 143 in the minimum support price (MSP) of paddy to Rs 2,183 per quintal for this year, the second steepest increase in the last decade.
The highest increase in paddy MSP in the last 10 years was Rs 200 per quintal in 2018-19.
For 2023-24 kharif crops, MSP has been increased in the range of 5.3 per cent to 10.35 per cent, and in absolute terms it has been increased Rs 128 to Rs 805 per quintal.
Briefing the media later, food minister Piyush Goyal said: “Farmers will benefit from the increase in MSP at a time the retail inflation is on a declining trend.”
In kharif cereals, MSP of the ‘’common grade’’ paddy has been increased 7 per cent (Rs 143) to Rs 2,183 per quintal for 2023-24 from Rs 2,040 in the previous year. The support price of ‘’A’’ grade variety of paddy has been raised by Rs 143 to Rs 2,203 per quintal from Rs 2,060.
Paddy is the main kharif crop, the sowing of which normally begins with the onset of southwest monsoon.
Among pulses, moong has seen the maximum increase of 10.35 per cent in MSP at Rs 8,558 per quintal in 2023-24 from Rs 7,755 per quintal in 2022-23.
Among cash crops, cotton (long stable) and cotton (medium stable) MSP have been fixed at Rs 7,020 per quintal and Rs 6,620 per quintal respectively, which are 10.03 per cent and 8.88 per cent higher than previous year.
