Terming the rise in MSP for kharif crops a 'revolutionary step', Union Minister Chaudhary Birender Singh today said the move will help increase the share of agriculture to the GDP and boost farmers' income.
Seeking to address farm distress ahead of general elections, the Centre today hiked price paid to farmers for paddy by a record Rs 200 per quintal and by up to 52 per cent in other summer-sown crops, a move that may push food subsidy beyond Rs 2 lakh crore and possibly stoke inflation.
"The impact of this revolutionary move will be that it will increase the share of agriculture to the GDP," Steel Minister Singh said at a press conference here.
However, he did not elaborate on this.
At present, the contribution of agriculture and allied sectors to the GDP is about 15 per cent.
Today's decision of increasing the MSP will also help in fulfilling the Prime Minister's vision of doubling farmers' income by 2022, he added.
The minister further said the move will make farmers realise that farming is no more a loss-making business as they will be getting about 50 per cent more than their cost of production.
"So, even if they don't get the market, they need not to worry," he said.
The decision, he said, will also encourage people to take up farming as a profession.
"I was told that about 20 crore youth of this country had started believing that farming is a loss-making business. Educated people were giving up farming and were moving towards cities. But now I believe this will encourage people to take up farming as a profession," he added.
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