Government Approves Hike in Minimum Support Price For Kharif Crops

The government has decided to sharply increase the Minimum Support Price (MSP) for Kharif crops, as it responds to concerns about distress in the country’s farm economy despite two years of strong monsoons.

The MSP for common variety paddy, the most important Kharif crop, will be raised by Rs 200 over last year’s Rs 1,550 per quintal. That works out a 13%t increase for the financial year ended March 2019 compared to a 5.4% increase in FY18. The year-on-year jump in MSP for most other Kharif crops has also been far steeper than the annual increases announced over the last three years.

Khareef Season MSPs: Annual Increase 

Crop FY16 FY17 FY18 FY19
Paddy 3.70 4.30 5.40 12.90
Jowar 2.60 3.50 4.60 42.90
Bajra 2 3.50 7.10 36.80
Maize 1.10 3 4.40 19.30
Ragi 6.50 4.50 10.10 52.40

Source- The Bloomberg