The Cabinet has approved a steep rise in the minimum support price of crops, giving farmers the promised 50% return on input costs. The biggest increase in MSP, about 40-50%, is for coarse grains that are planted by the poorest farmers, mostly in un-irrigated areas. About a quarter of India’s area under such crops is in poll-bound Rajasthan, with the rest split between several states including Maharashtra, Karnataka, Uttar Pradesh, Odisha, Andhra Pradesh and Madhya Pradesh. The government said the “historic” Rs.15,000-crore move fulfilled the promise made in this year’s budget that MSPs would be determined on the principle that the harvest should get the farmers 150% of the cost of planting and tending to the crop.

(Economic Times)