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PM Modi announces highest-ever increase in MSP for paddy crop

In the highest ever single-year raise in the minimum support price of paddy, the government on Wednesday hiked the MSP…

PM Modi announces highest-ever increase in MSP for paddy crop

Prime Minister Narendra Modi. (File Photo: IANS)

In the highest ever single-year raise in the minimum support price of paddy, the government on Wednesday hiked the MSP for paddy by a steep Rs 200 per quintal, as it looked to fulfil its poll promise to give farmers 50 per cent more rate than their cost of production.

The decision was taken at a Union Cabinet meeting headed by Prime Minister Narendra Modi.

While the BJP had promised in 2014 to give farmers a price of 1.5 times the cost, an announcement to give effect to the promise was made in the government’s fifth and final annual Budget presented on February 1 this year.

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The Cabinet Committee on Economic Affairs (CCEA) at its meeting has approved the MSP for 14 Kharif (summer-sown) crops.

PM Modi took to Twitter and termed the decision as historic adding that the government was committed in working towards the welfare of farmers.


Home Minister Rajnath Singh also lauded decision on Twitter and wrote that not only farmers would receive profitable value of their crops after Wednesday’s announcement but it would also have a positive impact on the country’s economy.

According to sources, the MSP of paddy (common grade) has been increased by Rs 200 to Rs 1,750 per quintal, while that of Grade A variety by Rs 160 per quintal to Rs 1,750.

The MSP of cotton (medium staple) has been increased to Rs 5,150 from Rs 4,020 and that of cotton (long staple) to Rs 5,450 from 4,320 per quintal. Talking about 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.

Paddy is the main kharif (summer sown) crop, the sowing of which has already begun with the onset of southwest monsoon.

(With agency inputs)

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