MSP for 14 Kharif Crops Hiked by 50-83%, Farm Loans' Repayment Deferred Till August 31: Union Cabinet

Team Latestly

New Delhi, June 1: In "historic decisions" taken for farmers, the Narendra Modi government on Monday announced a hike in minimum support prices (MSP) for 14 kharif crops. The decision was finalised at the Union Cabinet meeting chaired by Prime Minister Narendra Modi earlier today. The MSP hike comes at a time when farmers begin sowing the kharif crops - which are expected to be harvested in September-October.

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As per the decision on price increment taken by the Centre, the minimum support prices on the 14 kharif crops will be raised by 50-83 percent, said Union Minister Prakash Javadekar. The move is aimed at increasing the farmers' income and mitigating the economic impact of COVID-19 in the agricultural sector.

"This is a historic decision," Javadekar said, as he reiterated the commitment of Modi government to increase farmers' income significantly by the year 2022. The Prime Minister, on earlier occasions, has vowed to double the agricultural income by the third year of his second tenure in power.

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"MSP rate for paddy now at Rs 1868 per quintal, jowar-Rs 2620/quintal, bajra-Rs 2150/quintal, and 50 percent increase in ragi, moong, groundnut, soyabean, til and cotton, for the year 2020-21," said Union Minister for Agriculture, Narendra Singh Tomar.

Crop-Wise MSP Rates


Decision on MSP and Farm Loans Taken by Govt


The Cabinet also decided to further extend the deadline for farm loans repayment, as several states are far from normalcy amid the COVID-19 pandemic. The final date for payment of agricultural loans or EMI has been pushed from May 31 to August 31, 2020, said Javadekar.

The Cabinet has also decided to incentivise farmers for early repayment of loans. If the dues are cleared before August 31 - for loans taken from the government-owned financial institutions - then two percent of interest and principal amount each would be waived, the Minister added.