The Union Cabinet on Monday approved an increase in minimum support prices (MSP) of 14 Kharif crops. The increased MSP will ensure a price which will be 50 percent to 83 percent more than the cost of production, I&B Minister Prakash Javadekar said while briefing reporters on Cabinet decisions.

Accordingly, the MSP for Paddy has been fixed at Rs 1,868, for jowar at Rs 2,620, while Bajra is at Rs 2,150.

"MSP rate for Paddy now at Rs 1868 per quintal, Jowar-Rs 2620/quintal, Bajra-Rs 2150/quintal, and 50% increase in Ragi, Moong, Groundnut, Soyabean, Til and Cotton, for the year 2020-21," news agency ANI quoted Tomar as saying at the briefing.

The government has also procured 360 lakh metric tonne wheat, while the procurement of pulses is also on currently, Tomar said.

The decision was announced by Union Ministers Prakash Javadekar, Nitin Gadkari and Narendra Tomar during the media briefing in Delhi on Union Cabinet's decisions.

Apart from MSP for Kharif crops, Union agriculture Narendra Singh Tomar also said that the deadline for farmers to repay their loans has been extended to August.

Govt hikes paddy MSP by Rs 53/qtl for 2020-21

The MSP of paddy has been raised marginally by Rs 53 per quintal to Rs 1,868 per quintal for the 2020-21 crop year, while the rates for oilseeds, pulses and cereals were also raised.

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 up with the arrival of southwest monsoon.

The Met Department has projected normal monsoon during the June-September period.

"Based on the recommendation of the Commission for Agricultural Costs and Prices (CACP), the cabinet has approved MSP of 14 crops. Paddy (common) MSP has been increased to Rs 1,868 per quintal for this year," Agriculture Minister Narendra Singh Tomar told media after the meeting.

He said the increase in support price of paddy will ensure 50 percent return over the cost to the farmers, he said.

The MSP of Grade A variety of Paddy has been increased to Rs 1,888 per quintal for 2020-21 crop year from 1,835 per quintal last year.

In an official statement, the government said the support price of cotton (medium staple) has been increased by Rs 260 per quintal to Rs 5,515 per quintal for 2020-21 from Rs 5,255 per quintal last year.

The support price of cotton (long staple) has been increased to Rs 5,825 per quintal from Rs 5,550 per quintal in the said period, it added.

-with inputs from PTI

First Published:Jun 1, 2020 4:34 PM IST