Big news for farmers! The government has given a big gift to the farmers by increasing the MSP of Kharif crops. Now your crop will not be affected by the fluctuations in the market, because the government will buy the crop at a guaranteed price. Let us know what MSP is, what the impact will be on your crops, and how to take advantage of the cheap loan available on the Kisan Credit Card.
A big gift from the government to the farmers
The central government has increased the minimum support price (MSP) for this year’s Kharif crops by a huge amount. Union Minister Ashwini Vaishnav said that it is the policy of the government to keep the MSP at least 50% more than the cost of the crop. This increase will cost the government a total of ₹ 2.07 lakh crore, which is ₹ 7,000 crore more than last year. This step will strengthen the financial condition of the farmers by getting them a better price for their crop.
What is Minimum Support Price (MSP)
MSP, i.e., Minimum Support Price, is the price that the government fixes for the farmers’ crop. It is a kind of guarantee for the farmers that no matter how much the price of the crop falls in the market, the government will buy their crop at this fixed price. Due to this, farmers do not have to fear loss, and they get the right fruit of their hard work.
Big increase in MSP of Kharif crops
Kharif crops are those which are sown in the monsoon season, i.e., June-July and harvested in September-October. This year, the MSP of 14 major Kharif crops has been increased.
The new price of paddy (normal) has become ₹ 2,369 per quintal, and the price of grade A has become ₹ 2,389 per quintal.
The price of jowar (hybrid) has become ₹ 3,699, and the price of jowar (maldandi) has become ₹ 3,749 per quintal.
The price of millet has increased to ₹2,775 per quintal, while the new price of maize has been fixed at ₹2,400 per quintal.
The MSP of tur/tur has now become ₹8,000, and moong ₹8,768 per quintal. The new price of urad is ₹7,800 per quintal.
The MSP of soybean has become ₹5,328 and cotton (medium staple) ₹7,710 per quintal.
Kisan Credit Card (KCC)
The Kisan Credit Card Scheme is another big benefit for farmers. Under this government scheme, farmers can take a small loan of up to ₹3 lakh at a very low interest rate of just 4%. They can use this loan to meet any need related to farming. This scheme frees farmers from expensive loans from moneylenders.
How is the interest on KCC so low
The basic interest rate on KCC is 7%, but the government has reduced it a lot. The government gives a subsidy of 1.5% to the banks giving loans. And if the farmer repays the loan on time, he gets an additional discount of 3%. In this way, farmers have to pay only 4% interest in total. The same rule applies to loans up to ₹ 2 lakh taken for animal husbandry or fish farming.