In an attempt to woo the farmers the government, on Wednesday, increased the purchase price of Kharif crop including rice and cotton by RS 200 per quintal.
This was a part of the decision of the Cabinet Committee on Economic Affairs (CCEA) that decided to raise the Minimum Support Price (MSP) for Kharif crops in the 2018-2019 season.
While briefing the media, the home minister Rajnath Singh said, “It is a historical decision. Though farmers are the biggest producers, consumers and customers, they never received their due. However, this government is changing it now.”
Last month, Prime Minister Narendra Modi had announced that the Union Cabinet would approve a Minimum Support Price (MSP) of 150 per cent of input cost for Kharif crops in the 2018-2019 season.
“By 2022, the incomes of the farmers will be doubled, as promised by the government. This decision will increase the purchasing capacity of the farmers which in turn will widen the economic impact,” said Rajnath Singh at the Cabinet briefing.
The government has set an MSP of paddy at Rs 1750 per quintal, maize at Rs 1700 per quintal, cotton Rs 5150 per quintal, sunflower seeds Rs 5388 per quintal and soybean Rs 3399 per quintal.
Though experts feel that there might be an inflationary impact of the increase in MSP, however, it will be clear only by the next quarter.
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