The government on Wednesday hiked the minimum support price (MSP) of paddy by Rs 60 per quintal for this kharif season. The MSP is the rate at which the government buys the grain from farmers.
The support price of paddy common variety has been raised to Rs 1,470 per quintal, while A grade variety paddy has been increased to Rs 1,510 per quintal for 2016-17, said an official source.
A decision in this regard was taken in the meeting of the cabinet committee of economic affairs (CCEA). The cabinet also approved a substantial increase in the MSP of pulses for the kharif season.
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.
Sowing of kharif crops will begin with the onset of southwest monsoon this month. Paddy is the main crop grown in the season.
The government has increased the paddy MSP marginally as the country has sufficient stocks and the price increase covers the cost of production. Barring pulses and oilseeds, the CCEA has approved the MSP of other crops as per the recommendation of government’s advisory body on farm pricing CACP.
In case of pulses, sources said, the government has hiked MSP substantially for the kharif season to boost domestic production and reduce the country’s dependence on imports.