• Centre has raised the minimum support prices (MSPs) of kharif crops by the most in six years in a bid to address rural distress.

• In keeping with the promise made in this year’s Budget speech, the Union Cabinet has approved a hike in MSPs for kharif crops so that they are 50% higher than the cost of production, not including land costs. 
• For the 2018-19 crop season, MSP for paddy—the main crop planted by farmers in the rain-fed kharif season—was increased to Rs.1,750 per quintal, an increase of Rs.200 per quintal, or a 13% hike over last year’s MSP.
• This is the steepest hike since 2012-13 (in percentage terms) and also the highest approved by the current government since it came to power in 2014.
• Among other crops, support prices for soybean, groundnut, moong and cotton were raised significantly, between 10% and 28% year-on-year.
• Also, major hikes being seen in cereals such as bajra, jowar and ragi.
• However, Several farmer outfits expressed their dissatisfaction.
• A farmer outfit blamed the government for betraying farmers  yet again by announcing MSP for kharif crops based on A2+FL costs [which includes family labour, but not land costs] instead of the promised more comprehensive C2 costs [which includes land costs].
• Theye added that without any procurement mechanism for the majority of crops, the hike was simply notional.
• As according to some experts, It will be useful for paddy farmers in States with a strong procurement machinery.

The Hindu,LiveMint.