The concept, operation and rationale of the MSP

Under pressure because of the ongoing farmers’ agitation across the country demanding better price for their produce, the Centre has decided to increase the minimum support price of major pulses by around Rs. 350-400 per quintal, while that of paddy by almost Rs. 80 per quintal. In percentage terms the increase was 7-8 per cent for pulses from the previous MSP, while in case of paddy the hike was around 6 per cent. That apart, the Centre has decided to increase the MSP of soybean by Rs. 275 per quintal.