The Union Cabinet has given approval to the proposal for raising Minimum Support Price (MSP), for Kharif crops.

MSP for paddy, which was Rs.1,550 per quintal, has been raised by approx Rs.250 per quintal. While MSP for Ragi will be increased to Rs.2,897 from Rs.1,900 per quintal, Moong is likely to be increased to Rs.6,975 from Rs.5,575 per quintal and Soyabean to Rs.3,399 from Rs.3,050 per quintal.

The additional bill for the Centre with the increased MSP is estimated to be approx Rs.33,500 crore. Moreover, as per the cabinet note, the added cost of MSP is 0.2% of GDP.

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