Cabinet hikes paddy MSP by Rs 60 a quintal for 2016-17 crop year

The Cabinet on Wednesday approved a proposal to increase the minimum support price (MSP) of paddy by Rs 60 to Rs 1,470 per quintal for 2016-17 kharif season. 

The government had fixed the MSP of common variety paddy at Rs 1,410 for 2015-16 kharif (summer) season. 

MSP is the rate at which the government buys the grain from farmers. Sowing of kharif crops will begin with the onset of southwest monsoon in June. Paddy is the main crop grown in the season. 

According to sources, CACP had proposed an increase in paddy MSP by Rs 60 per quintal.