The government on Wednesday raised the minimum support price (MSP) for paddy by 5.35 per cent to Rs 2,300 per quintal for the 2024-25 kharif marketing season.
Announcing the MSP increase, Information and Broadcasting Minister Ashwini Vaishnaw said the cabinet had approved the minimum support prices for 14 kharif (summer) crops based on recommendations from the Commission for Agricultural Costs and Prices (CACP).
For the upcoming kharif season, Vaishnaw told reporters that the MSP for “common” grade paddy has increased by Rs 117 to Rs 2,300 per quintal, while the MSP for the “A” grade variety has increased to Rs 2,320 per quintal.
According to the minister, this is the first cabinet decision made during Prime Minister Narendra Modi’s third term in office.
Vaishnaw said the government had a clear policy decision taken in the 2018 Union Budget that the MSP should be at least 1.5 times the cost of production, and this principle was followed in the latest MSP hike. The cost was scientifically calculated by CACP, he added.
