The government on Thursday approved a hike in the minimum support price (MSP) for a range of summer-sown produce, including rice, lentils, cotton and oilseeds, a move that will boost food output and farmers’ income, but can also lead to higher food inflation.
The MSP is the assured price at which government buys major farm produce to give farmers assured markets, which also acts as a base price for private traders. Higher MSPs essentially act as a pay hike for millions of farmers, although successive hikes have been blamed for food inflation.
The MSP for paddy or unhusked rice has been hiked by a moderate 5% to Rs 1,310 per quintal (100 kg). A normal monsoon is expected to increase the area sown for rice, the main summer staple, thereby raising total output, as the country is likely escape a drought for the fourth straight year. Farmers will now get Rs 4,300 per quintal for tur, a commonly consumed pulses variety, which constitutes a raise of Rs 450 or 12%. heir talent.” He added.