Government Hikes MSP for Kharif Crops Amid Upcoming Elections

The government has raised the minimum support price (MSP) for paddy and other kharif crops ahead of state assembly polls. This hike, the first major decision of PM Modi's third term, reflects the commitment to ensuring support prices are at least 1.5 times the production cost.

The government on Wednesday announced a significant hike in the minimum support price (MSP) for paddy by 5.35 percent to Rs 2,300 per quintal for the 2024-25 kharif marketing season. This decision, taken amidst key state assembly elections in Haryana, Maharashtra, Jharkhand, and Delhi, marks a crucial move by Prime Minister Narendra Modi's administration.

Despite facing massive rice surpluses, the hike underscores the government's policy to maintain MSP at no less than 1.5 times the cost of production, according to Information and Broadcasting Minister Ashwini Vaishnaw. He emphasized the government's focus on farmer welfare, highlighting the Rs 35,000 crore increase in financial implications from the previous season.

Vaishnaw announced the Cabinet's approval for the new MSP rates for 14 kharif crops, based on the CACP recommendations. This move is expected to significantly boost farmers' incomes with the MSP for various crops, including paddy, jowar, and pulses, seeing notable increases.

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