Higher Support prices (MSP) for Paddy

The govt.  is planning to announce a steep increase in the minimum support price ( MSP) of paddy. Paddy is the key Kharif crop, which is planned to receive a hike of 13 % to Rs. 1,750 per quintal for 2018-19.

As per then reports, the price of the other Kharif season crop is also believed to witness a hike. Prime Minister Modi has announced that the cabinet will approve the hike in the MSP at least 1.5 times of the production cost. 

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Generally, the MSP is declared before the sowing of the crops but this time Kharif season's sowing is already done but the MSP have not been decalered. MSP is an important factor to determine what and how much of the crop, a farmer is going to cultivate. The government has delayed the announcement of MSP of Kharif crops for the season, which has been a cause of concern for many farmers. 

The agricultural ministry this time has gone beyond the recommendation by the CACP, the body which suggested the MSP for the crops. In the general budget this year the government announced that it will fix a support price at least 1.5 times of the cost of the production. As reported by the sources, an increase of Rs.200 per quintal has been proposed in the MSP of paddy. The price for the MSP 2018-19 has been fixed at Rs. 1,550 per quintal for common grade and Rs. 1,590 for Grade A variety.

India reached record production of rice touching 111 million tonnes in 2017-18 year. The output is much more than the domestic requirement and rice being a water guzzling crop affects the principle of sustainable farming. It is important to understand that the higher MSP may push farmers to plant more paddy which could prove to be a disaster for the Indian agricultural scenario.