MSP hike to boost farm income, spur growth: Assocham

The Government’s decision to hike the minimum support price (MSP) for 14 khariff crops would boost farmers’ income, resulting in a huge rural demand push to the Indian economy, Assocham said.

Last week, the BJP-led government increased the MSP for paddy by a record Rs 200 per quintal that will cost the exchequer over Rs 15,000 crore, and help fulfil its poll promise to give farmers 50 per cent more than their cost of production.

“The MSP may not be an ideal and a perfect solution to address the farmers’ woes, but the long term reforms would take long time and our farmers cannot be allowed to suffer that long.