Krishi VaartaOutlook Agriculture
Centre: Increase in Paddy MSP by Rs. 200/quintal
The government intends to declare an increase in the paddy's minimum support price (MSP), which is the key Kharif crop, by 13% to Rs. 1,750 per quintal for the 2018-19 crop year.
As per the sources, the MSP of the other 13 Kharif (summer-sown) plants is also anticipated to increase significantly. The Ministry of Agriculture has proposed a higher rate than suggested by the CACP advisory body despite increasing farm distress due to declining prices of most crops due to bumper growth.
In the general budget of this year, the government announced that it would fix a support price at least 1.5 times the cost of production. According to sources, approximately Rs. 200 per quintal rise was suggested in the MSP of paddy (common grade) for the 2018-19 crop year (July-June). For the current year, paddy MSP has been adjusted for normal grade at Rs. 1,550 per quintal and for ‘Grade A’ variation at Rs. 1,590 per quintal. The MSP is normally declared just before the start of the sowing to help farmers identify the crop they want to sow. Sowing Kharif crops begins with the onset of the southwest monsoon and harvesting from October.
Source: Outlook Agriculture, June 29, 2019
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