NEW DELHI: The government of India has fixed minimum support price (MSP) for 14 Kharif crops. Union Agriculture Minister Narendra Singh Tomar said that fixing MSP for 14 summer-sown crops will offer 50-83% profit over cultivation cost.

The government on Monday conducted a cabinet meeting headed by Prime Minister Narendra Modi and declared a hike in the minimum support price (MSP) of paddy marginally by Rs 53 per quintal to Rs 1,868 per quintal for the 2020-21 crop year.

This decision was taken as the India Meteorological Bureau predicted June-to-September monsoon for 2020. Minister Narendra Singh Tomar said that increase in the MSP of paddy will ensure 50 percent return over the cost of farmers.

In an official statement, the government said the support price of cotton (medium staple) has been increased by Rs 260 per quintal to Rs 5,515 per quintal for 2020-21 from Rs 5,255 per quintal last year. The support price of cotton (long staple) has been increased to Rs 5,825 per quintal from Rs 5,550 per quintal in the said period, it added.

The returns to farmers over the cost of production are estimated to be highest in the case of bajra (83%), followed by urad (64%), tur (58%) and maize (53%).

The hike in the MSP for summer crops is in line with the Union Budget 2018-19 announcement of fixing the MSPs at a level of at least 1.5 times of the countrywide weighted average cost of production. Doing so, would give at least 50% returns for each crop.

The country is facing a severe economic crisis due to the coronavirus pandemic but the farm sector is unfazed and will witness a growth of at least 3% in 2020-21. According to government think tank Niti Aayog’s assessment in April, agriculture will help overall growth.