New Delhi: The Central government on Monday increased the minimum support price (MSP) of kharif paddy by Rs 53 per quintal to Rs 1,868 per quintal for 2020-21 crop year.
The Cabinet Committee on Economic Affairs (CCEA) chaired by Prime Minister Narendra Modi approved the increase in the MSPs for all mandated kharif crops for 2020-21 marketing season.
In an official statement, the government said the MSP of Grade A variety of paddy has been increased to Rs 1,888 per quintal this year from the last year’s 1,835. The increase in MSP for kharif crops is in line with the Union Budget 2018-19 announcement of fixing the MSPs at a level of at least 1.5 times of the all-India weighted average Cost of Production (CoP), it added.
The highest increase in MSP has been made for nigerseed (Rs 755 per quintal) followed by sesamum (Rs 370), urad (Rs 300) and cotton (long staple) (Rs 275).
The support price of cotton (medium staple) has been increased by Rs 260 per quintal to Rs 5,515 from Rs 5,255 per quintal last year. Similarly, cotton (long staple) will now cost Rs 5,825 per quintal from Rs 5,550 per quintal. It is expected to benefit the farmers of rain-fed areas in Odisha, particularly Kalahandi district.
The decision, taken by the Cabinet headed by Prime Minister Narendra Modi, will help farmers take a call on which kharif (summer) crop to grow as sowing picks up with the arrival of southwest monsoon.