Govt increases support prices of paddy by up to Rs 226 per quintal at the farmers’ price

Published On: November 9, 2022 07:05 PM NPT By: Republica  | @RepublicaNepal

KATHMANDU, Nov 9: The government has fixed the support price of paddy at a maximum of Rs 3,128 per quintal, Rs 226 more than the price of last year.

According to the Ministry of Agriculture and Livestock Development (MoALD), the aforementioned price has been fixed for medium-sized paddy. The price of short grain has been fixed at Rs 2,967 per quintal, which is Rs 215 more than the price of last year.  

The floor price is the lowest price that can be charged for a commodity. The measure is targeted to safeguard farmers from being exploited by the middlemen and traders and encourage them to grow crops.

Since 2012, the government has been fixing the minimum price of paddy every year. The price is computed based on the cost of production, transportation charges and inflation.

Usually, the rate is declared in advance for farmers to plan their crops before the start of the planting season. This year, it has been delayed by almost four months.

The government has allocated Rs 330 million to purchase 300,000 tons of paddies from farmers. Last year, the government purchased only 9,000 tons of the food grain.

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