Centre set to announce highest ever increase in MSP for paddy

New Delhi: In a move that could bring cheers to the farmers in the country, Modi government is contemplating to increase the minimum support price (MSP) of paddy.

As per media reports in English daily The Indian Express, the paddy MSP could be hiked by Rs 200 per quintal. Earlier, the MSP for the common grade paddy was Rs 1,550 per quintal last year.

The increase in paddy MSP is seen as part of Prime Minister Narendra Modi’s previous announcement to maintain the MSP at least at one and half times of the production cost.

The hike in MSP for paddy is expected to put an additional burden of an estimated Rs 12,000 crore on account of procurement based on records of procurement in previous years.

Rice procurement last year stood at over 36 million tonnes which corresponds to about 55 million tonnes of paddy, the reports said.

(Photo source: Zeenews)