Govt raises MSP for paddy to Rs 2,300 per quintal

New Delhi: The government on Wednesday raised the minimum support price (MSP) for paddy by 5.35 per cent to Rs 2,300 per quintal for the 2024-25 kharif marketing season, a move that comes ahead of key state assembly polls. The Rs 117 per quintal hike in paddy support price comes despite the government grappling with massive rice surpluses but it is significant ahead of elections in states like Haryana, Maharashtra, Jharkhand and Delhi.

The MSP increase in the 14 kharif (summer) crops is the first major decision of Prime Minister Narendra Modi's third term in office and shows the government's "clear policy" to keep support prices at least 1.5 times the cost of production, Information and Broadcasting Minister Ashwini Vaishnaw said. Paddy is the main kharif crop. Sowing of kharif crops usually begins with the onset of the southwest monsoon in June and marketing between October 2024 and September 2025.

Announcing the MSP increase, Vaishnaw said the Cabinet has approved the minimum support prices for 14 kharif crops based on recommendations from the Commission for Agricultural Costs and Prices (CACP).