In the highest ever single-year raise in the minimum support price of paddy, the government on Wednesday hiked the MSP for paddy by a steep Rs 200 per quintal, as it looked to fulfil its poll promise to give farmers 50 per cent more rate than their cost of production.

The decision was taken at a Union Cabinet meeting headed by Prime Minister Narendra Modi.

While the BJP had promised in 2014 to give farmers a price of 1.5 times the cost, an announcement to give effect to the promise was made in the government’s fifth and final annual Budget presented on February 1 this year.

The Cabinet Committee on Economic Affairs (CCEA) at its meeting has approved the MSP for 14 Kharif (summer-sown) crops.

PM Modi took to Twitter and termed the decision as historic adding that the government was committed in working towards the welfare of farmers.

मुझे अत्यंत खुशी हो रही है कि किसान भाइयों-बहनों को सरकार ने लागत के 1.5 गुना MSP देने का जो वादा किया था, आज उसे पूरा किया गया है। फसलों के न्यूनतम समर्थन मूल्य में इस बार ऐतिहासिक वृद्धि की गई है। सभी किसान भाइयों-बहनों को बधाई।

— Narendra Modi (@narendramodi) July 4, 2018

कृषि क्षेत्र के विकास और किसान कल्याण के लिए जो भी पहल जरूरी हैं, सरकार उसके लिए प्रतिबद्ध है। हम इस दिशा में लगातार कदम उठाते आए हैं और आगे भी आवश्यक कदम उठाते रहेंगे।

— Narendra Modi (@narendramodi) July 4, 2018

Home Minister Rajnath Singh also lauded decision on Twitter and wrote that not only farmers would receive profitable value of their crops after Wednesday’s announcement but it would also have a positive impact on the country’s economy.

आज प्रधानमंत्री श्री @narendramodi की अध्यक्षता में हुई कैबिनेट की बैठक में केन्द्र सरकार ने ऐतिहासिक फ़ैसला करते हुए 2018-19 की खरीफ फसलों के लिए न्यूनतम समर्थन मूल्य (MSP) को उत्पादन लागत का कम से कम डेढ़ गुना करने का फैसला लिया है।मैं प्रधानमंत्री जी को इसके लिए बधाई देता हूँ।

— Rajnath Singh (@rajnathsingh) July 4, 2018

केन्द्र सरकार के इस निर्णय से जहां किसानों को अपनी फसलों का लाभकारी मूल्य मिलेगा वहीं इसका सकारात्मक प्रभाव देश की अर्थव्यवस्था पर भी पड़ेगा।

— Rajnath Singh (@rajnathsingh) July 4, 2018

According to sources, the MSP of paddy (common grade) has been increased by Rs 200 to Rs 1,750 per quintal, while that of Grade A variety by Rs 160 per quintal to Rs 1,750.

The MSP of cotton (medium staple) has been increased to Rs 5,150 from Rs 4,020 and that of cotton (long staple) to Rs 5,450 from 4,320 per quintal. Talking about pulses, tur MSP has been raised to Rs 5,675 per quintal from Rs 5,450, and that of moong to Rs 6,975 per quintal from Rs 5,575. Urad MSP has been hiked to Rs 5,600 from Rs 5,400 per quintal.

Paddy is the main kharif (summer sown) crop, the sowing of which has already begun with the onset of southwest monsoon.

(With agency inputs)