The Cabinet said this would help in risk coverage of crops from non-preventable natural calamities for farmers across the country till 2025-26.
During the Cabinet briefing, union minister Ashwini Vaishnaw said the two schemes will promote agricultural mechanisation including crop residue management and accelerator fund for agri startups.
Exporters have welcomed the move, characterizing it as a "game-changer" for the agricultural industry
The new MSP for paddy is Rs 2,300, which Rs 117 increment over the previous MSP, Union Minister Ashwini Vaishnaw said at the briefing.
The government also said that the State and Union Territory Food Safety Departments have been put on alert and urged to take action against violators under the provisions of the FSS Act, 2006.
Mills in Bengal directly employ about 2.5 lakh workers, while 40 lakh farmers are engaged in producing the raw material in the state.
Although onion exports are generally banned, the government permits specific quantities to friendly nations based on their requests.
The government has permitted exports of 30,000 tonne of non-basmati white rice to Tanzania and 80,000 tonne of broken rice to Djibouti and Guinea Bissau.
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