The government has raised the minimum support price (MSP) of paddy marginally by Rs 72 per quintal to Rs 1,940 per quintal for the 2021-22 crop year, while the rates of pulses, oilseeds and cereals were hiked substantially.
Among the commercial crops, the MSP of cotton was increased by Rs 211 per quintal to Rs 5,726 for medium staple variety, and by Rs 200 per quintal to Rs 6,025 for long-staple variety of cotton for the 2021-22 crop year (July-June).
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 with the spread of the Southwest monsoon in the coming weeks.
Briefing reporters after the Cabinet meeting, Agriculture Minister Narendra Singh Tomar said the Cabinet has approved the MSP of 14 kharif crops for the 2021-22 crop year (July-June) and farmers would get 50-85 per cent returns over their cost of production.
Dispelling apprehensions about the MSP, the minister said there were doubts about the MSP a few months back when the new farm laws were passed in Parliament.
At that time, both the Prime Minister and myself had assured that the MSP policy is there and will continue in future as well.
The government is regularly fixing the MSP for both rabi and kharif crops.