With an eye at the upcoming 2019 general elections, the Union Cabinet on Wednesday approved the Minimum Support Price (MSP) for Kharif crops for 2018-19.
Bharatiya Janata Party President Amit Shah termed the decision as historic. He said, "This is a historic decision. Modi government has always taken decisions in favour of farmers."
Union Home Minister Rajnath Singh said that this decision by Prime Minister Modi will give the farmers the price they deserve for their produce.
He said, "This is a historic decision, Farmers are the largest producer, consumer and customer in this country but they never got the price they deserved for their produce. Modi ji understood this and now farmers will get 1.5 times more MSP on their produce."
Union Minister Harsimrat Badal said, "NDA government has not only brought crops under MSP but in the path-breaking decision also decided to pay difference to farmers if produce is not procured by government agencies. Farmers will get Rs 6,000 to Rs 8,000 more per acre due to enhanced MSP."
Uttar Pradesh Chief MInister Yogi Adityanath said, "This will bring happiness to the farmers. This is a major decision taken by PM Modi's Government. This will improve the quality of life of farmers."
The new MSP is likely to provide relief to farmers who have faced falling crop prices. It will also increase the costs for the exchequer because of higher outlays for procurement of crops such as paddy.
Finance minister Arun Jaitley, in his 2018 Budget speech had announced that Niti Aayog in consultation with central and state governments will put in place a mechanism to ensure farmers get the benefit of the minimum support price.
Since 2007-08, MSP has gone up from Rs 745 to Rs 1550 per quintal.
In 2008-09, the MSP was increased from Rs 745 per quintal in the previous FY to Rs 900 per quintal (an increase of Rs 155 per quintal). Rs 100 per quintal on MSP was also raised by the UPA government in FY 2009-10.
In financial year 2010-11, when the UPA government started taking hit over a multitude of corruption allegations, no raise in MSP was announced.
In the following three financial years till 2013-14, the then Manmohan Singh government increased MSP by Rs 80, Rs 70 and Rs 60 respectively.
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)