Government announces big hike in support prices of paddy, pulses
20 Aug 2009
The government today announced an across-the-board hike in the minimum support prices (MSP) paid to farmers for paddy and pulses, in an effort to boost production and make up for the shortfall in the current crop.
The cabinet committee on economic affairs (CCEA) today approved the revision in the MSP for kharif crops for 2009-2010 season on the recommendations of the Commission for Agricultural Costs and Prices (CACP).
"We are offering an attractive MSP. It (drought) is an evolving situation," home minister P Chidambaram told reporters after a meeting. "MSP brings relief to the farmers," he added.
The support price for common variety paddy will now stand at Rs950 a quintal, while the A-grade variety would get Rs980 per quintal - an increase of Rs100 a quintal for both.
The MSP for toor dal has been increased to Rs2,300 from Rs2,000, that of moong to Rs2,760 from Rs2,520 and that of sesame to Rs2,850 from Rs2,750 per quintal.
| Commodity | Variety | MSP for 2008-09 | MSP approved for 2009-10 season | Increase in MSP recommended over last season's MSP | |
| | | | | Absolute | %age |
| Paddy | Common | 850* | 950 | 100 | 11.76 |
| | Grade A | 880* | 980 | 100 | 11.36 |
| Jowar | Hybrid | 840 | 840 | No increase | - |
| | Maldandi | 860 | 860 | No increase | - |
| Bajra | - | 840 | 840 | No increase | - |
| Maize | - | 840 | 840 | No increase | - |
| Ragi | - | 915 | 915 | No increase | - |
| Tur (Arhar) | - | 2000 | 2300 | 300 | 15.00 |
| Moong | - | 2520 | 2760 | 240 | 9.52 |
| Urad | - | 2520 | 2520 | No increase | - |
| Groundnt-in-shell | - | 2100 | 2100 | No increase | - |
| Soyabean | Black | 1350 | 1350 | No increase | - |
| | Yellow | 1390 | 1390 | No increase | - |
| Sunflower Seed | - | 2215 | 2215 | No increase | - |
| Sesamum | - | 2750 | 2850 | 100 | 3.64 |
| Nigerseed | - | 2405 | 2405 | No increase | - |
| Cottaon (Kapas) | Medium Staple | 2500 | 2500 | No increase | - |
| | Long Staple | 3000 | 3000 | No increase | - |
Food and agriculture minister Sharad Pawar yesterday said the current drought situation could result in a 10 million tonne fall in paddy production this Kharif season.