Government announces big hike in support prices of paddy, pulses

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.