The Narendra Modi government has cleared a new list of minimum support price for 14 summer (kharif) crops – the biggest in its tenure, that will cost the state nearly Rs 15,000 crore in public funds. The minimum support price for paddy has been hiked by 1.5 times – the rest by approximately 50 per cent.
The decision, taken by the Union Cabinet headed by Prime Minister Narendra Modi, comes less than a year before next general elections.
The move is expected to provide a big boost to farmers and the rural economy. For the consumers, it could result in higher prices of some food commodities.
The support price of paddy alone could be up by a steep Rs 200 per quintal.