The Modi Government has increased the support price highest ever by one and half time more in the last year of its 5 year term. The Union Home Minister Mr.Rajnath Singh and Madhya Pradesh Chief Minister Mr.Shivraj Singh Chouhan hailed it as biggest ever gain given to farmers.
But Mr.Modi promised it in the election campaign of Lok Sabha in 2014 alongwith the promise to bring back black money staked in foreign banks. His promise on black money was dismissed by his Party President Mr.Amit Shah as mere a sentence (Jumla).
His another promise to farmer to enhance support price by one and a half time was kept in long pending for four years and in the Central Budget presented in the February this year 2018 it was announced that this year it will be implemented and on the 6th Month of July it is announced.
The scheme of support price was started by the Congress-UPA Government and has become a permanent annual feature. All the previous Government enhanced the support by upto Rs.150 per quintal on different crops.
But the Modi has not changed the support price for its four years otherwise at the rate of Rs.150 per year increase it would have gone up by Rs.600. But in the 4th year Modi Government enhance the support only once in the election year. The Farmers will get 50 per cent more in the cost of production of the crop.
In the new support price on the rise has been enhanced by Rs.160 to 200 per quintal. The maximum rise is given on Ragi crop. It is increase by Rs.947 to make it Rs.2897 per quintal. In Milo it is 730, Bajra 525, Maize 275, Pulse Arhar 225, Moong 1400, Urad 200, Groundnut 440, Sun Flower 1288, Soyabean 399, Tilli 944, Black Til 1827 per quintal and Rs.1130 per bale of cotton.
With constant increase in food crops and oil seeds the prices of these commodities are also on rise. But this price rise cannot be taken in calculation of inflation as price rise. By reducing the cost of production the prices of the food crops can be maintained at a particular point to stabilize the economy at some place. The farmers are getting support of support price but the cost of production is going up because of increase in the prices of fertilizers and pesticides.
Rice and cotton are our important export commodities. The Arab and Gulf nations are very close to India and they prefer rice export from India. But with price going up we are in competition with South East nations.
Most of our cotton exported to China and it helping maintaining our trade balance with China to great extend. But once on price issue China imported cotton from America and there was cotton stock glut in India and severe price crash in domestic market.
The Vidarbha area of Maharashtra and in Nimar area of Madhya Pradesh are very rich cotton producing areas.
In rice and cotton India has stiff competition in world market and on support price or any other policy we must keep in mind the world market rates and fluctuations.