The centre has approved an increase in minimum support price (MSP) in the range of 5% to 8% for various kharif or summer grown crops, including paddy, pulses, oilseeds and cotton, for the 2017-18 crop season (July-June).
The government has approved Rs80 per quintal hike in paddy MSP, while support price of pulses has been raised by up to Rs400 per quintal to encourage farmers increase area sown under kharif crops this season. It has approved paddy MSP at Rs1,550 for common grade variety and Rs1,590 for ‘A’ grade variety.
While the Food Corporation of India (FCI) in collaboration with state agencies purchase rice and wheat from the farmers by paying MSP, for other crops the centre intervenes when market prices fall below MSP.
The India Meteorological Department (IMD) recently had said that rainfall during south-west monsoon season (June-September) is likely to be in ‘normal’ range. IMD in its second long range forecast stated that quantitatively monsoon season rainfall for the country as whole is likely to be 98% of the benchmark – Long Period Average (LPA), with a model error of ± 4%.
Because of normal rainfall last year, the country’s foodgrains production in 2016-17 crop year (July-June) is estimated to reach an all-time record of 273.38 million tonne (MT), which is 8.7% more than the previous year. Due to two consecutive years of deficient monsoons (2014 & 2015), the foodgrains production went down to 252 MT in 2014-15 and 2015-16 crop years from 265 MT reported in 2013-14.