Centre hikes paddy MSP by Rs 60; substantial increase in MSP of pulses
New Delhi, June 1
The government on Wednesday hiked the minimum support price (MSP) of paddy by Rs 60 to Rs 1,470 per quintal for the 2016-17 kharif season.
A decision in this regard was taken at a meeting of the Cabinet Committee on Economic Affairs (CCEA).
The cabinet also approved a substantial increase in the MSP of pulses for the 2016-17 kharif season.
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The government had fixed the MSP of common variety paddy at Rs 1,410 and grade A variety grain at Rs 1,450 per quintal for the 2015-16 kharif season.
MSP is the rate at which the government buys the grain from farmers. Sowing of kharif crops will begin with the onset of southwest monsoon this month. Paddy is the main crop grown in the season.
The support price of paddy common variety had been raised to Rs 1,470 per quintal, while A grade variety paddy had been increased to Rs 1,510 per quintal for 2016-17, a source said.
The government has increased paddy MSP marginally as the country has sufficient stocks and the price increase covers the cost of production.
The government also sharply hiked the MSP of pulses by up to Rs 425 per quintal for this year to boost output and check price rise.
The government also approved a bonus of Rs 425 for pulses and Rs 100-200 per quintal for oilseeds growers over and above the MSP to encourage domestic production and check prices.
“We have increased the MSP of all kharif crops for 2016-17. Over and above the MSP, we have also decided to give a bonus of Rs 425 per quintal for pulses and Rs 100-200 per quintal for oilseeds,” Agriculture Minister Radha Mohan Singh told reporters after the CCEA meeting.
“This (increase in pulses and oilseeds MSP) is expected to give a strong price signal to farmers to bring more acreage under pulses and oilseed crops,” Singh said.
Among oilseeds, groundnut support price has been increased by Rs 190 per quintal to Rs 4,220, soyabean and nigerseed by Rs 175 per quintal each to Rs 2,775 and Rs 3,825, respectively, for the 2016-17 kharif season.
The MSP of sunflower seed has been hiked by Rs 150 per quintal to Rs 3,950 and sesamum support price has been increased by Rs 300 to Rs 5,000 per quintal for this year.
Among cash crops, the government has approved an increase in the MSP of cotton by Rs 60 per quintal to Rs 3,860 per quintal for medium staple.
Among other crops, the CCEA has raised the MSP of ragi by Rs 75 per quintal, of jowar by Rs 60 per quintal, of bajra by Rs 55 per quintal and of maize by Rs 40 per quintal.
With retail prices of pulses ruling over Rs 175 per kg in most parts of the country because of short supply, an increase in MSP of lentils may encourage farmers to sow pulses. PTI
