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MSP hike: Paddy, agri-linked stocks jump up to 10%

The government on Wednesday hiked minimum support prices for kharif crop for FY19.|
Updated: Jul 04, 2018, 04.07 PM IST
The government on Wednesday hiked minimum support prices for kharif crop for FY19.
Agri-linked stocks rallied up to 10 per cent as the market gave thumbs-up to the latest round of MSP hike today.

The government hiked minimum support prices for kharif crop for FY19.

Major players in the paddy space such as Kohinoor Foods, LT Foods, Daawat, Chaman Lal Setia and KRBL surged up to 7 per cent just after the announcement. The Cabinet Committee on Economic Affairs (CCEA) hiked MSP of paddy for common variety by Rs 200 per quintal.

Mahindra and Mahindra (M&M), the market leader in tractor and farm equipment, wiped off its day’s losses and was nearly 1 per cent up at Rs 900 shortly after the government's decision.

It was not just rice, a host of other crops were covered by the CCEA decision.

Most fertilizer stocks have been firming up since morning. Shiva Global Agro Industries surged 10 per cent, followed by Coromandel (up 3 per cent), FACT (2.50 per cent) and GNFC (2.11 per cent).

MSPs for ragi and soybean now stand at Rs 2,897 and Rs 3,399 per 100 kg, respectively, from Rs 1,900 and Rs 3,050 earlier.

The decision, taken by the Union Cabinet headed by Prime Minister Narendra Modi, comes less than a year before the next general election.

While the BJP had promised in 2014 to give farmers the price of 1.5 times the cost, an announcement to give effect to the promise was made in the government's fifth and final annual Budget presented on February 1 this year.

The CCEA at its meeting today also approved MSP of 14 kharif (summer-sown) crops.

MSP of paddy (common grade), according to PTI, has been increased by Rs 200 to Rs 1,750 per quintal while that of Grade A variety went up by Rs 160 to Rs 1,750.

MSP of cotton (medium staple) has been raised to Rs 5,150 from Rs 4,020 and that of cotton (long staple) to Rs 5,450 from Rs 4,320 per quintal.

In pulses, tur MSP stands raised to Rs 5,675 per quintal from Rs 5,450, and that of moong at Rs 6,975, from Rs 5,575. Urad MSP has been hiked to Rs 5,600, from Rs 5,400 per quintal.

Also Read

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Record paddy procurement on cards due to higher MSP, headwinds in exports

No proposal to fix MSP for milk: Government

Tur and chana prices rule 15% to 20% below MSP, expected to decline further

Cotton prices likely to fall below MSP

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