The government today hiked the Minimum Support Price (MSP) of paddy marginally by Rs 53 per quintal to Rs 1,868 per quintal for the common variety and Rs 1,888 for ‘Grade A’ for the crop year 2020-21. As recommended by the Commission for Agricultural Costs and Prices (CACP), the rates of all 14 crops of the season, including oilseeds, pulses and cereals, have been raised.
Rates of 14 crops raised on CACP suggestion
Repayment date extended for short-term agriculture loans up to Rs3 lakh
Farmers can repay/renew loans up to the extended date at 4% per annum interest without penalty
MSP for cotton (medium staple) raised by Rs260 per quintal to Rs5,515
Cotton MSP (long staple) raised to Rs5,825 per quintal; return on cost highest for bajra
The Cabinet also extended the repayment date for short-term agriculture loans up to Rs 3 lakh due between March 1 and August 3. This will help farmers repay/renew such loans up to the extended repayment date at 4 per cent per annum interest without attracting penalty. They will not have to visit the banks for such renewal amid the Covid-19 pandemic, Agriculture Minister Narendra Singh Tomar announced after a Cabinet meeting chaired by PM Narendra Modi.
The government claimed big benefits with returns on cost as high as 83% for bajra and 50 per cent for paddy (both common and Grade A), but the farmers termed the increase ‘miniscule’. Tomar said the increase in the paddy support price would ensure 50% return on the cost.
Manufacturing at historic low in May
Manufacturing output stayed at historic low levels, as weak demand led to lower production in May. The IHS Markit India Manufacturing PMI index pointed to a substantial decline in the sector’s health, a shade better than that in April. IANS
Moody’s lowers rating, says challenges ahead
Moody’s Investors Service downgraded India’s sovereign rating to ‘Baa3’ from ‘Baa2’, saying there would be challenges in implementation of policies to mitigate risks of a sustained period of low growth and deteriorating fiscal position. “The outlook remains negative,” the agency said.(TNS)
