Cabinet approves steep Rs 200 per quintal hike in MSP for paddy


new delhi ,july 04:
The government’s price advisory body CACP has calculated production cost of paddy at Rs 1,166 per quintal and the government has raised the MSP of paddy (common grade) by Rs 200 to Rs 1,750 per quintal for 2018-19 season, he said.The support price of Grade A variety of paddy has been raised by Rs 180 per quintal to Rs 1,770. The increase in paddy MSP is 50-51 per cent over its production cost.
“This will send a positive message to farmers and boost their confidence and end farm distress,” Singh said.
Terming it as a historic decision, the minister said the sharp increase in MSP was done after lot of consideration and “not in hurry”. The hike in the MSP will cost the exchequer over Rs 15,000 crore, he added.
“This will increase the income of farmers and purchasing capacity, which will have impact on wider economic activity”.
Replying to a queries on likely impact of MSP hike on price rise, Singh said, “We are concerned about inflation. It is not correct to say that inflation will go up. We have controlled inflation in last four years and will succeed in controlling it in future as well as”.According to the government, the MSP of cotton (medium staple) has been raised to Rs 5,150 from Rs 4,020 and that of cotton (long staple) to Rs 5,450 from 4,320 per quintal.
The Commission for Agricultural Costs and Prices (CACP) has pegged the production cost of medium staple cotton at Rs 3,433 per quintal and the MSP increase is 50 per cent over the cost.
In pulses, tur MSP has been raised to Rs 5,675 per quintal from Rs 5,450, and that of moong to Rs 6,975 per quintal from Rs 5,575. Urad MSP has been hiked to Rs 5,600 from Rs 5,400 per quintal.
The MSP of tur and urad has been raised by up to 66 per cent over their production cost.
Among oilseeds, MSP of soyabean has been increased to Rs 3,399 per quintal from Rs 3,050, while that of groundnut (shell) to Rs 4,890 per quintal from Rs 4,450, sunflower seed to Rs 5,388 per quintal from Rs 4,100, Sesamum to Rs 6,249 per quintal from 5,300 and niger seed to Rs 5,877 per quintal from Rs 4,050.
There has been 50 per cent increase in the MSP of oilseeds over the cost of production.
Aserting that farmers are biggest producers and consumers, Singh said, “After the country’s independence, farmers have not got right price for their produce. Farmers were in despair and their plight was understood by the Prime Minister”.
Welcoming the decision, Food Minister Ram Vilas Paswan said, “We will ensure that each grain is bought at MSP. We have fulfilled the promise. The decision is not linked to next year general election”.


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