Centre on Wednesday approved a hike in the Minimum Support Prices (MSP) for all mandated Kharif or monsoon crops for this year.
According to the report in NDTV, the Cabinet Committee on Economic Affairs (CCEA) made this decision to ensure that growers receive remunerative prices for their produce and to stimulate crop diversification.
The MSP represents the price at which the government buys crops from farmers, providing them with a safety net against sharp fall in prices.
Centre’s approval for the increase in MSP is seen as a crucial move to protect farmers' interests in the wake of unpredictable market fluctuations.
MSP is the minimum price set by the government for certain agricultural products, at which the products would directly be bought from the farmers if the open market prices are less than the cost incurred.
Farmers have been demanding a much higher MSP for their produce due to increasing cost of production.
The government increases MSP every harvest, however the farmers say it does not yield a high profit to them.