KATHMANDU, June 17: The Ministry of Industry, Commerce and Supplies (MoICS) has sought to hike the minimum support price of paddy for the next fiscal year by up to Rs 212 per quintal.
According to MoICS officials, the ministry has forwarded the proposal of minimum support price of paddy to the Cabinet for approval. If the Cabinet approves the proposal, farmers will get the minimum price of common paddy at Rs 28.85 per kg, up from Rs 26.73 per kg. Similarly, the minimum support price for ‘mota dhan’ (short-grain rice) will be set at Rs 27.35 per kg, up from Rs 25.32 per kg for this fiscal year.
The MoICS in line with the price recommended by the Ministry of Agriculture and Livestock Development has forwarded the new price of the agro product. The increased price is said to ensure the farmers a 20 percent profit and cover the transport cost.
The floor price is the lowest price that can be charged for a commodity. The minimum support price is a measure taken by the government to protect farmers against sudden slumps in the market price. It is what the government will pay the farmers for their crops when there are no other buyers in the market.
Normally, the government announces the minimum support price for paddy in time for farmers to make their production plans before the beginning of the planting season. The government resumed setting the minimum support price of paddy since 2016 after suspending the practice for nearly two decades.