The government has raised the minimum support price (MSP) for paddy by 5.35% to Rs 2,300 per quintal for the 2024-25 kharif marketing season. This decision comes despite surplus rice stocks but is significant ahead of upcoming elections in Haryana, Maharashtra, Jharkhand, and Delhi. Information and Broadcasting Minister Ashwini Vaishnaw announced the increase, highlighting the cabinet’s approval of MSP for 14 kharif crops based on recommendations from the Commission for Agricultural Costs and Prices (CACP). The MSP for ‘common’ grade paddy is now Rs 2,300 per quintal, while ‘A’ grade paddy is Rs 2,320 per quintal.
Vaishnaw noted that this was the first cabinet decision in Prime Minister Narendra Modi’s third term, emphasizing the 2018 policy that MSP should be at least 1.5 times the cost of production. This principle was adhered to in the recent hike, with costs scientifically calculated by the CACP. The Food Corporation of India currently holds around 53.4 million tonnes of rice, four times the required buffer for July 1, sufficient for welfare schemes for one year without fresh procurement.
Despite lower rainfall of about 20% across the country since June 1, the meteorological department reports favorable weather conditions for further monsoon advancement. The MSP increase reflects the government’s ongoing commitment to supporting farmers amidst changing climatic conditions and surplus stock management.
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