The government has decided to raise minimum support price (MSP) for pulses and oil seeds to encourage farmers to expand the area under cultivation for these crops.
It also raised the MSP for paddy to Rs 1,000 per quintal, the price that farmers received for the common variety of paddy for the previous Kharif crop since the government had declared Rs 50 bonus in addition to the base price of Rs 950.
This will give the government enough elbow room to announce a similar bonus closer to the November assembly elections in Bihar.
The Cabinet Committee on Economic Affairs that mostly went by the suggestions of the Commission on Agricultural Costs and Prices, however, raised the MSP for arhar (tur) to Rs 3,000 beyond the recommended Rs 2,800, Home Minister P. Chidambaram said.
“Since we were already importing pulses at a higher price than what is given to farmers, it was felt that there was no reason not to encourage farmers,” an official said.