India's Federal Cabinet Raises MSP for Kharif Crops: Is that just another political move?
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India's federal cabinet on June 7, 2023, raised the minimum support prices (MSP) for 14 kharif or summer sown crops for the 2023-24 marketing season. The MSP for paddy, the main kharif crop, was raised by Rs 143 per quintal to Rs 2,183 per quintal for common paddy and Rs 2,203 per quintal for grade A paddy.
The MSP for other major kharif crops was also raised, including:
- Moong dal: Rs 803 per quintal, up 10.4%
- Sesamum: Rs 8,635 per quintal, up 10.3%
- Groundnut: Rs 6,357 per quintal, up 9%
- Cotton (medium staple): Rs 6,620 per quintal, up 8.9%
- Cotton (long staple): Rs 7,020 per quintal, up 10%
The increase in MSP is expected to benefit farmers and boost production of kharif crops. The government has said that the increase in MSP is in line with its commitment to ensure remunerative prices for farmers.
The increase in MSP comes at a time when the country is facing a high inflation rate. The government has said that the increase in MSP will help to moderate inflation.
The increase in MSP is also seen as a political move by the government ahead of the upcoming state elections in Rajasthan, Madhya Pradesh, Chhattisgarh, and Telangana.
The government has said that it is committed to providing farmers with a fair price for their produce. The increase in MSP is a step in that direction.
