In India, crop purchase prices for farmers have increased

Published 2024년 6월 21일

Tridge summary

India increased the government-approved price for spring crops such as rice, soybeans, and cotton by 5.4%, setting the new price at 2,300 rupees ($27.57) per 100 kg for new season paddy. This decision, aimed at encouraging farmers to increase production, could lead to a bumper harvest and potential easing of export bans. However, the higher prices may make Indian rice more expensive for foreign buyers, prompting the government to consider reducing export duty from 20% to 15%. This move comes amidst political significance, with the Bharatiya Janata Party (BJP) facing provincial elections in Haryana and Maharashtra, both key agricultural states, following their loss of seats in rural areas in recent general elections.

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Original content

India on June 20 increased the government-approved price for spring crops such as rice, soybeans and cotton, OilWorld.RU reports. The country announces support prices for more than a dozen crops every year to set a benchmark. India has raised the price at which it will buy new season paddy from farmers by 5.4% to 2,300 rupees ($27.57) per 100 kg, Information Minister Ashwini Vaishnaw said on Wednesday after a cabinet meeting chaired by Modi. Higher prices will prompt farmers to increase production in the world's second-largest rice producer, and a bumper harvest could prompt the government to ease a ban on some exports. India is the world's largest exporter of rice. The procurement price of rice has been increased to reflect rising production costs, which will encourage farmers to increase production, B.V. said. Krishna Rao, President of the Indian Rice Exporters Association. “However, this will also make Indian rice more expensive for foreign buyers. To mitigate this, the ...

Source: Zol