New Delhi: Congratulating the farmer community, Prime Minister Narendra Modi on Wednesday expressed happiness that the government has increased the Minimum Support Price (MSP) by one-and-a-half times of the cost price, as promised earlier.
''I am very happy that that government has fulfilled its promise made to farmers, thus increasing the MSP to one-and-a-half times of the cost price,'' Mr Modi wrote on micro-blogging site Twitter.
He said that it was an unprecedented increase and congratulated the farmers.
He said the government was bound to take any initiative which is beneficial for the development of agriculture and the farmer community.
''We are constantly moving in that direction and will do the same in future,'' the Prime Minister said.
The Union Cabinet increased the MSP of paddy to Rs 1750 per quintal from Rs 1550 per quintal.
Addressing a press conference after the Cabinet meeting, chaired by the Prime Minister, Home Minister Rajnath Singh said, "The Cabinet has also decided to increase MSP on other kharif crops by nearly 50 percent over input cost." Mr Singh said, the increase will cost the state exchequer Rs 15,000-crore, adding that the increase in MSPs will not have any impact on price rise.
The announcement of hike in MSP comes few months before the crucial assembly elections in agrarian states like Rajasthan and Madhya Pradesh.