Prime Minister Narendra Modi tweeted his congratulations to the farmers saying the government is committed to making all efforts for development of agriculture and farmers’ welfare. Here’s more on the new Minimum support prices.
The Narendra Modi government has shown its firm commitment to doubling farmers income, and also ensuring food security for the country. The government had promised an MSP of 150 percent of the input cost of farm produce and in keeping with that promise the Union Cabinet took a historic decision on Wednesday.
The Cabinet Committee on economic affairs chaired by Prime Minister Modi decided to make a steep increase in Minimum support price for 14 crops. The government said the historic decision would increase the nation’s confidence.
In this year’s Budget, Finance Minister Arun Jaitley had announced a pre-determined principle of fixing MSP at a level of at least 150 percent of the cost of production. Implementing this for the Kharif Season.
MSP or minimum support price is the price at which government buys grain from farmers. Government has changed the formula for fixing MSP to A2 + FL. Under this formula, the total input costs from sowing to harvesting including wages of the family members are accounted.
The new MSP ensures an increase varying from one and a half to two times the farmer’s input cost.
The MSP for paddy has been raised to Rs. 1750, which is 50% more than the cost. Jowar has been raised to Rs. 2430 which is more than 50% above the cost.
For Bajra the new MSP is Rs. 1950, a whopping 97% above the cost. Maize now has an MSP of Rs. 1700 which is 50% more than the cost. Ragi too will now be bought at an MSP of Rs. 2897 which 50% higher than the cost.
The MSP of Arhar at 5675 is 65 percent more than the input cost. MSP for Moong is Rs. 6975, 50% more input cost. Urad is 5600 ensuring a 63% profit margin on cost.
Groundnut will now fetch 50% more than its input cost at 4890 rupees. Soybean too will fetch 50% higher than the input cost at an MSP of 3399. Sunflower at 5388 rupees brings in 50% more than its cost.
Sesamum has a new support price of Rs. 6249 50% higher than its cost. MSP of Nigerseed is 5877, 50% more than its cost value. And cotton now has an MSP of Rs. 5150, 50% above its cost to the farmer.
Government says the New MSP will cost Rs. 15,000 crore to the exchequer and there is no fear of it causing inflation.
Government has given a huge incentive to the farm sector. Last week the Prime Minister had met nearly 140 farmers from across the country and assured them that this decision would be taken at the next Cabinet meeting.
Earlier too the Prime Minister had announced relief for sugarcane farmers. It is clear that Government has been taking numerous steps to strengthen the agriculture sector and improve the welfare of farmers.