Minimum Support Price Paddy in India

            Rice is one of the most important food crops of India. It is cultivated throughout the country and contributes about 40% of the food crop production. It is predominantly a rain fed crop and is grown in the Kharif season i.e. after the onset of monsoon (rainy season in India). However in parts of West Bengal, Tamil Nadu, Andhra Pradesh and Odisha it is grown in the Rabi season that is in winters. Overall there is a steady increase in production year on year, but due to lack of irrigation large fluctuations can be observed in production.
             Although the overall Rice production is increasing, agricultural experts have raised concerns that the poor rice production techniques being used in most parts of the country impose a serious environment burdens and cannot sustain projected food demands after 2020. Major Rice producing states like Punjab, Uttar Pradesh, Haryana, and Andhra Pradesh follow intensive Rice-Rice or Rice-Wheat production technique which is detrimental to the soil and environment causing issues like declining water table, deteriorating soil health and emergence of resistant disease/pests in the growing areas. However due the governmental support through Minimum Support Price procurement and lack of profitable crop rotation alternatives there is not going to be a shift in the cropping system any time soon in the future.
             India produces 70% of the world's Basmati production. Basmati is a premium quality variant of Rice. India also tops the charts when it comes to Rice export globally holding more than a quarter of the world's market, a whopping 27.1% share, Thailand being 2nd with 20.5% share, whereas USA has 9.2% share. After 2011 the government lifted the ban on export of Rice. Since the domestic prices are below the international prices, this lift of ban gave a boost to the incomes of India Rice producers.
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             SOURCE - MARKETLINE .
             Minimum Support Price.
             The government of India started with the MSP scheme in 1966-67 for Wheat in the wake of green revolution to safeguard the interests of the farmers against decreasing prices.