The government has fixed the minimum support price of paddy for the fiscal year 2023/24.
Minister for Communication and Information Technology Rekha Sharma informed that the Cabinet meeting held on Tuesday set the floor price for domestically produced paddy. According to Sharma, the minimum support price of short grain paddy has been fixed at Rs 3,198 per quintal and medium sized paddy at Rs 3,362 per quintal for the next fiscal year.
The support price set by the government is Rs 231 per quintal more than the existing rate for short grain paddy and it is Rs 234 per quintal higher for medium-sized paddy.
The floor price is the lowest price that can be charged for a commodity. The measure is targeted to safeguard farmers from being exploited by the middlemen and traders and encourage them to grow crops.
Since 2012, the government has been fixing the minimum price of paddy every year. The price is computed based on the cost of production, transportation charges and inflation, according to the Ministry of Agriculture and Livestock Development.
Last year, the government declared the minimum support price for paddy only in November, almost four months late compared to normal time. This time, the government however has declared the price at the mean planting season.
Although the government fixes the support price of rice every year, it has not been implemented effectively so far. As a result, the farmers are compelled to sell their products at throw-away prices to the traders.
