New Delhi [India], Oct 04 (ANI): Union Cabinet Committee on Economic Affairs chaired by Prime Minister Narendra Modi on Wednesday approved increasing the Minimum Support Prices (MSPs) for all Rabi crops for the year 2018-19 to be marketed in the year 2019-20.
MSP is referred to a price at which the government buys crops from the farmers, to protect agriculture producers from fall in farm prices.
With the increased prices in place, the farmers will get an additional return of Rs 62, 635 crores on the notified crops. The initiative will help in doubling farmers' income by increasing MSP of notified crops to at least 50 percent return over cost of production.
After the implementation of cabinet decision, the increased MSPs of wheat will also be raised by Rs.105 per quintal, safflower by Rs. 845 per quintal, barley by Rs.30 per quintal, masur (lentil) by Rs.225 per quintal, gram by Rs.220 per quintal and rapeseed and mustard by Rs.200 per quintal.
The MSPs fixed by the government for wheat, barley, gram, masur, rapeseed and mustard and safflower are being said to much higher than the cost of production.
In his 2018 Budget speech, Jaitley had announced that think-tank Niti Aayog in consultation with central and state governments will put in place a mechanism to ensure farmers get benefits of the minimum support price. (ANI)
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