On Wednesday, Central Government has announced higher minimum support prices for 14 crops. The new price for each of these crops will be a minimum of 1.5 times the cost of cultivation. By doing this, the government seeks to address distress in the agrarian economy and ensuring farmers’ protests.
Home minister Rajnath Singh said that it is the biggest increase in the present government’s tenure. This is going to increase government expenses by Rs 15,000 crore.
To woo distressed farmers, the government has increased MSPs for the summer-sown season so that they get 50% returns over cost.
“When MSPs were much lower earlier, the government could not protect these declared support prices. The big challenge (with higher procurement) is how will the government release all these stocks? That mechanism is not known yet,” said Milind Murugkar, a Nashik-based independent farm economist.

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