Government Raises Paddy MSP by 5.35% Despite Surplus, Ahead of Elections

The government has increased the minimum support price for paddy by 5.35% to Rs 2,300 per quintal for the 2024-25 kharif marketing season, despite a record rice stockpile. This decision, the first in Prime Minister Modi's third term, follows the 2018 policy that MSP should be at least 1.5 times the cost of production.

The government announced on Wednesday a 5.35% increase in the minimum support price (MSP) for paddy, setting it at Rs 2,300 per quintal for the 2024-25 kharif marketing season. Despite a substantial surplus of rice stocks, the decision holds significant political weight ahead of elections in states including Haryana, Maharashtra, Jharkhand, and Delhi.

Information and Broadcasting Minister Ashwini Vaishnaw stated that the cabinet has approved the MSP for 14 kharif crops based on recommendations from the Commission for Agricultural Costs and Prices (CACP). For 'common' grade paddy, the MSP has been raised by Rs 117 to Rs 2,300 per quintal, while the 'A' grade variety is now priced at Rs 2,320 per quintal.

This marks the first major decision taken in Prime Minister Narendra Modi's third term. Minister Vaishnaw emphasized that the MSP increase aligns with the 2018 Union Budget policy that ensures MSP is at least 1.5 times the cost of production, a cost calculated scientifically by the CACP.

Currently, the Food Corporation of India holds a record 53.4 million tonnes of rice, enough to meet welfare scheme demands for a year. Forecasts from the meteorological department indicate that, despite a 20% lower rainfall since the monsoon season's start on June 1, weather conditions are now favorable for further advancement of rains.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)