Govt kept its promise of fixing MSP at 1.5 times of cost of production: Nadda

New Delhi: BJP president J P Nadda on Monday said the government has kept its promise of fixing the minimum support price (MSP) at a level of at least 1.5 times of the cost of production.

Welcoming the Union Cabinet's decision to fix the minimum support price for kharif crops, including paddy, cotton and maize, Nadda said the government has also extended the crop loan repayment to August 31 along with rebate and interest subvention, which will hugely benefit farmers.

"The government has kept its promise of fixing the MSP at a level of at least 1.5 times of the cost of production. Crop loan repayment has also been extended to August 31 with rebate and interest subvention hugely benefitting farmers," Nadda said in a series of tweets.

He also congratulated the Modi government for taking urgent actions to quickly operationalise monetary measures announced for strengthening Micro, Small and Medium Enterprises (MSMEs) and helping 50 lakh street vendors as part of "Atmanirbhar package".

The Union Cabinet, chaired by Prime Minister Narendra Modi on Monday, approved provisioning of Rs 20,000 crore as subordinate debt to provide equity support to stressed MSMEs and proposed equity infusion of Rs 50,000 crore for units through a fund as part of a roadmap to implement the package announced for the sector.

The government on Monday raised the MSP of paddy marginally by Rs 53 per quintal to Rs 1,868 per quintal for the 2020-21 crop year, while the rates for oilseeds, pulses and cereals were hiked substantially.