Govt announces minor hikes in support prices of kharif crops

The government yesterday announced minor increases in the minimum support prices (MSP) of paddy and some coarse grains as also major pulse groups and oilseeds for the current crop year, which it said won't impact inflation.

The Cabinet Committee on Economic Affairs (CCEA), on the recommendations of Commission for Agricultural Costs and Prices (CACP), approved marginal increases in the  minimum support prices (MSPs) for rice as also coarse cereals like jowar, maize, ragi  and pulses such as tur, moog and urad for the 2014-15 kharif crop season.

While MSP for paddy has been increased by Rs50 per quintal to Rs1,360 per quintal to encourage farmers to cultivate rice, the support prices of pulses have been raised by up to Rs100 per quintal.

Paddy MSP of grade 'A' variety has been raised by Rs55 per quintal to Rs1,400 a quintal.

Announcing the cabinet decision, law and telecom minister Ravi Shankar Prasad said, "I do not think rise in MSP is directly linked to inflation. We are taking several measures to control inflation. In view of the possibility of below normal monsoon, the government has gotten into action and taken several steps to control prices. We have accepted the recommendation of CACP. We have given best possible deal to the farmers." 

For pulses, the CCEA approved Rs50 increase in the support price of arhar and urad to Rs4,350 a quintal each. In case of moong, the support price has been increased by Rs100 to Rs4,600 a quintal.

The government also announced an increase of Rs50 in the MSP of sunflower seed to Rs3,750 a quintal while the MSPs for sesamum and nigerseed have been raised by Rs100 each to Rs4,600 and Rs3,600 a quintal, respectively.

The CCEA also decided to increase MSP for cotton by Rs50 per quintal to Rs3,750 for medium staple, and to Rs4,050 for long staple.