Paswan thanks PM Modi for hiking MSP

Union Minister and Lok Janshakti Party (LJP) president Ram Vilas Paswan today thanked Prime Minister Narendra Modi for fulfilling his promise of hiking the MSP of Kharif crops to 1.5 times the cost of production.

The Modi government has fulfilled one of its two promises of hiking the minimum support price (MSP). The government had committed to fixing the MSP at 50 per cent above the cost of production, Paswan, the Union Minister for Consumer Affairs, Food and Public Distribution, told reporters here.

The earlier hikes used to be in the range of Rs 20 to Rs 30, but this is the first time that the MSP has seen a "quantum jump", he said.

"Our party thanks Prime Minister Narendra Modi for the Central Cabinet's decision to hike the MSP to 1.5 times the production cost for 14 food grain items. This is a historic decision," Paswan added.

The Modi government is now working on its second promise of doubling farmers' income by 2022, he said, adding, "The government has constituted a committee to look into various aspects as to how to execute it."

Stating that the Centre had taken several steps to improve the farmers' lot in the past, the Union minister said the government implemented the Pradhan Mantri Fasal Bima Yojana and the Pradhan Mantri Krishi Sinchai Yojana. Besides, the last Union budget was regarded a farmers' budget.

The cost of production for the 14 various food grain items for which the MSP has been fixed was decided by an independent agency and not by the Union Agriculture Ministry, he said.

The agency has calculated the cost of production of paddy at Rs 1,166 per quintal and the government has fixed the MSP of paddy (common grade) at Rs 1,750 and Rs 1,770 per quintal for grade A variety for 2018-19 season, thereby increasing the MSP to over 50 per cent above the cost of production.

Paswan said if the state or the central government was not able to procure grains from farmers at the MSP, then they might consider purchasing grains from traders who will be paid the difference (MSP minus market rate) by the central government.

"There are several options before the central government and one of them is to allow the traders to buy grains from farmers at MSP rate. The difference between the MSP and market rate would be paid by the government to the traders as subsidy.

"But this would be done in the interest of farmers and will not allow traders at any cost to make excessive profit," he added.

Speaking on the occasion, LJP Bihar unit chief Pashupati Kumar Paras, who is also a minister in the Bihar government, thanked the PM for the "historic decision" and announced that the state unit would celebrate July 10 in all districts of the state as 'Kisan Diwas'.