Farmers to get more money as govt hikes MSP

The government today 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 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.

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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.