The Centre on Wednesday raised the minimum support price (MSP) at which the government will buy all Kharif crops for the 2018-19 season. The Cabinet Committee on Economic Affairs (CCEA), at its meeting, approved the MSP of 14 Kharif (summer-sown) crops. The government has raised the MSP of the common rice variety by 13 percent. The government had fixed last year’s rice purchase price for the common variety at Rs 1,550 ($22.63) per 100 kilogrammes. [caption id=“attachment_4487395” align=“alignleft” width=“380”] Representational image. Reuters[/caption] It also raised the support price for a superior rice variety to Rs 1,770, up from Rs 1,590 last year, home minister Rajnath Singh told reporters on Wednesday. The hike in support prices will not impact food inflation and the government is confident in reining in rising consumer prices, Singh said. The cabinet also raised the minimum support price for soybean and long staple cotton by 10.3 percent and 20.7 percent, to Rs 3,399 and Rs 5,450 respectively, Singh said. Analysts and economists have warned the move could help push up inflation, and with a fiscal deficit, prompt India’s central bank to raise interest rates more steeply than expected.
Minimum Support Prices (MSPs) for 14 Kharif crops for the 2018-19 season |
---|
Commodity |
Paddy |
Paddy |
Jowar |
Jowar |
Bajra |
Ragi |
Maize |
Arhar(Tur) |
Moong |
Urad |
Groundnut |
Sunflower Seed |
Soyabean |
Sesamum |
Nigerseed |
Cotton |
Cotton |
* Includes all paid out costs such as those incurred on account of hired human labour, bullock labour/machine labour, rent paid for leased in land, expenses incurred on use of material inputs like seeds, fertilisers, manures, irrigation charges, Depreciation on implements and farm miscellaneous expenses, and imputed value of family labour. Source: PIB With inputs from Reuters