The Union Cabinet Committee on Economic Affairs on Wednesday approved Minimum Support Price (MSP) for summer-sown crops for the year 2018-19, which will provide farmers a profit of 50 per cent or more over the cost of production.

Addressing the media, Union Minister Rajnath Singh said the cabinet had taken the "historic" decision to provide relief to distressed farmers, as it would have "positive impact" on the economy. He said that the Commission of Agricultural Costs and Production (CACP) had fixed input cost for major monsoon crop paddy at Rs 1,166 per quintal and the government had added 50 per cent profit, which would make the MSP Rs 1,750 per quintal this year — a steep increase of Rs 200 from Rs 1,550 last year.