New Delhi: The government on Monday hiked 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, while the rates for oilseeds, pulses and cereals were also raised.
The decision, taken by the Cabinet headed by Prime Minister Narendra Modi, will help farmers take a call on which kharif (summer) crop to grow as sowing picks up with the arrival of southwest monsoon.
The Met Department has projected normal monsoon during the June-September period.
"Based on the recommendation of the Commission for Agricultural Costs and Prices (CACP), the cabinet has approved MSP of 14 crops. Paddy (common) MSP has been increased to Rs 1,868 per quintal for this year," Agriculture Minister Narendra Singh Tomar told media after the meeting.
He said the increase in support price of paddy will ensure 50 per cent return over the cost to the farmers, he said.
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The MSP of Grade A variety of Paddy has been increased to Rs 1,888 per quintal for 2020-21 crop year from 1,835 per quintal last year.
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.
Cabinet approves extension of repayment date for short-term agriculture loans
The Union Cabinet also gave its approval to extend repayment date up to August 31 for standard short-term loans up to Rs 3 lakh given for agriculture and allied activities by banks.
This is applicable to loans which have become due or shall become due between March 1, 2020, and August 31, 2020, with continued benefit of two per cent Interest Subvention (IS) to banks and three per cent Prompt Repayment Incentive (PRI) to farmers.
An official release said that the move will help farmers to repay or renew such loans up to the extended repayment date at 4 per cent interest per annum without attracting any penalty and thus help them avoid travelling to banks for such renewal during this COVID pandemic period.
It said that the government is providing concessional standard short-term agri-loans to farmers through banks with two per cent per annum interest subvention to banks and three per cent additional benefit on timely repayment to farmers thus providing loans up to Rs 3 lakh at 4 per cent interest on timely repayment.
(PTI and ANI Report)
