INSUBCONTINENT EXCLUSIVE:
Minimum support price (MSP) hike: A higher support price could also fuel food inflation.The government on Wednesday hiked the minimum
per cent more rate than their cost of production
The decision, taken by the Union Cabinet headed by Prime Minister Narendra Modi, comes less than a year before the 2019 general election
An announcement to give farmers a price of 1.5 times of cost was made by Union Minister Arun Jaitley in Budget 2018 presented on February 1
this year.The announcement of higher MSP coupled with the forecast of normal monsoon this year, could further boost foodgrains output
However, a higher support price could also fuel food inflation.The Cabinet Committee on Economic Affairs (CCEA), in its meeting, approved
the MSP of 14 Kharif (summer-sown) crops
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
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.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
crore based on procurement figure of the 2016-17 marketing year (October-September).The Food Corporation of India (FCI), the government's
nodal agency for procurement and distribution of foodgrains, buys wheat and rice from farmers at MSP and supplies the grains under the food
security law.Paddy is the main kharif (summer sown) crop, the sowing of which has already begun with the onset of southwest
Commission for Agricultural Costs and Prices (CACP), considering growing farm distress because of a fall in prices of most crops, owing to
bumper production.India is estimated to have harvested a record foodgrains production at 279.51 million tonnes in the 2017-18 crop year
(July-June) on all-time high output of rice, wheat, coarse cereals and pulses.
