Minimum Support Price of Rice in India

Minimum Support Price of Rice in India

Keeping in view the interests of the farmers as also the need for self reliance, the government is announcing Minimum Support Prices (MSP) for major crops from year to year. Farmers are free to sell in the open market or to the Government at the MSP depending on what is more advantageous to them.

The price support policy of the Govt. is directed at providing to insurance to farmers against any sharp fall in farm prices. The minimum price is fixed beyond which the market price cannot fall.

There were substantial increases in the MSPs of rice and wheat after the mid-nineties. MSP of paddy was increased by Rs 35 per quintal in 1997-98.

Minimum support price of paddy (Rs/quintal):



Year

Common

% Change

Fine

Super fine

Grade A

1994-95

340

9.7

360

380

-

1995-96

360

5.9

375

395

-

1996-97

380

5.6

395

415

-

1997-98

415

9.2

-

-

455

1998-99

440

6.0

-

-

470

1999-00

490

11.4

-

-

520

2000-01

510

4.1

-

-

540

2001-02

530

3.9

-

-

560

2002-03

530

-

-

-

560

2003-04

550

3.8

-

-

580

2004-05

560

1.8

-

-

590