What are the implications of the Centre raising paddy MSP for 2024-25 by ₹117 to ₹2,300 per quintal
The Centre has announced an increase in the Minimum Support Price (MSP) for paddy for the year 2024-25. This decision is likely to impact farmers and the agricultural sector significantly.
- Increased income for paddy farmers: The higher MSP of ₹2,300 per quintal will result in increased earnings for farmers cultivating paddy.
- Improved agricultural output: With a higher MSP, farmers may be encouraged to invest more in paddy cultivation, leading to improved agricultural production.
- Price stability: The increase in MSP can contribute to price stability in the market, ensuring that farmers receive fair compensation for their produce.
- Impact on food inflation: A rise in MSP could potentially impact food inflation if the increased prices are passed on to consumers, affecting overall inflation rates.
- Government expenditure: The government may need to allocate additional funds to support the increased MSP, which could impact budget allocation for other sectors.
Answered
10 months ago