InvestorQ : How will the announcement of enhanced MSP for Kharif products help the markets?
Deepa Salunkhe made post

How will the announcement of enhanced MSP for Kharif products help the markets?

Answer
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Juvina Maggie answered.
4 months ago


The cabinet announced minimum support prices for 14 crops that are 50%-83% higher than the cost of cultivation in a clear effort to put more money in the hands of farmers. The MSP of paddy and Jowar had been increased by 50% each over the cost of cultivation to Rs.1868 and Rs.2620 respectively. Similarly, the MSP of Bajra has been hiked by 83% over the cost of cultivation to Rs.2150. In addition, the government in a bid to give solace to farmers has also extended an interest subvention scheme for farmers till 31 August. This subvention allows the farmers to get a 3% reduction in interest rates if they pay loans on time. This is likely to be a big relief for farmers. In addition, the good Kharif output due to favorable MSP will help expand food grain output and also keep inflation in check.