TIL Desk/Business/New Delhi/ The government today hiked the minimum support price for paddy by a steep Rs 200 per quintal as it looked to fulfil its poll promise to give farmers 50 per cent more rate than their cost of production.
The decision, taken by the Union Cabinet headed by Prime Minister Narendra Modi, comes less than a year before next general election. While the BJP had promised in 2014 to give farmers a price of 1.5 times of cost, an announcement to give effect to the promise was made in the government’s fifth and final annual Budget presented on February 1 this year.
The Cabinet Committee on Economic Affairs (CCEA) at its meeting today approved the MSP of 14 Kharif (summer-sown) crops. According to sources, the MSP of paddy (common grade) has been increased by Rs 200 to Rs 1,750 per quintal, while that of Grade A variety by Rs 160 per quintal to Rs 1,750. Hike in paddy MSP will increase the food subsidy bill by over Rs 11,000 crore based on procurement figure of the 2016-17 marketing year.
