Day after farmers’ stir, govt hikes MSP of rabi crops; support price of wheat up by Rs 105 per quintal
Law minister Ravi Shankar Prasad said the decision would help farmers earn an additional income of Rs 62,635 crore.
The government on Wednesday increased the minimum support price (MSP) for six winter sown or rabi crops by up to 21%, including a 6 % hike in the support price of wheat to Rs 1,840 a quintal, for the 2018-19 season, in a move aimed at quelling the farmers’ protest and growing agrarian distress, a key political imperative ahead of elections in key states this year and the parliamentary polls next year.
Addressing reporters after a Cabinet meeting, Union law minister Ravi Shankar Prasad said the decision, which is part of the government’s effort to double farmer incomes by ensuring they get at least a 50% return over their cost of production, would help farmers earn an additional income of Rs 62,635 crore.
The decision taken by the Cabinet Committee of Economic Affairs (CCEA) comes a day after a massive march of farmers to the national capital, seeking higher support prices and loan waivers (apart from, in the case of sugarcane, speedy payment of the money owed to them by sugar mills). Police had to resort to firing tear gas shells to halt the protest. The farmers called off their protest march on Wednesday saying that the government had met most of their demands.
Union agriculture minister Radha Mohan Singh said the MSP for all rabi crops is higher than the cost of production by 50-112%.
The CCEA on Wednesday also decided to increase the MSP of barley by Rs 30 per quintal to Rs 1,440 per quintal and that of gram (chana) by Rs 220 per quintal to Rs 4,620 per quintal for the 2018-19 crop season.
The support price of masur (lentil) has been raised by Rs 225 to Rs 4,275 per quintal, while the support price of rapeseed/mustard has been hiked by Rs 200 to Rs 4,200 per quintal. Safflower MSP has been increased by Rs 845 per quintal to Rs 4,945.
The support price has been increased based on the recommendations of the Commission for Agricultural Costs and Prices, the farm advisory body.
In July, the government increased the paddy MSP by Rs 200 per quintal and also announced a steep hike in support price of other summer sown or kharif crops.
The government assured farmers in the Budget for 2018-19 that it would increase MSPs for summer-sown crops to ensure they get at least a 50% return. A crash in the prices of several farm commodities, especially pulses and oilseeds, in recent months has led to distress in the rural economy and triggered farmers’ protests in several states. Farmers have earned negative returns on many crops amid record harvests. The MSP hikes also come ahead of elections due in BJP-ruled states like Madhya Pradesh, Chhattisgarh and Rajasthan later this year.
