New Delhi: The Union Cabinet on Wednesday approved Minimum Support Price (MSP) for notified agricultural crops to provide farmers a profit of 50 per cent over the cost of production.
Addressing the media, Union Minister Rajnath Singh said the cabinet had taken the "historic" decision to give MSP of 1.5 times on the input cost to farmers, which will be a "big boost" to the economy.
"By 2022, the incomes of the farmers will be doubled, as promised by the government. This decision will increase the purchasing capacity of the farmers which in turn will widen the economic impact," Singh said at the Cabinet briefing.
According to the data of Commission for Agricultural Costs and Prices (CACP), the input cost of paddy is Rs 1166 per quintal for which government has set an MSP of Rs 1750 per quintal that is a hike of 50%, as compared to the MSP of Rs 1550 per quintal last year. Further, the MSP for maize has been fixed at Rs 1700 per quintal, for cotton Rs. 5150 per quintal, sunflower seeds Rs 5388 per quintal, soybean Rs. 3399 per quintal and mole Rs 6249 quintal.