India raises minimum buying prices of key crops

India has increased the minimum support price for key crops by up to more than 8 percent in an effort to provide relief to its beleaguered farmers struggling to make ends meet due to adverse weather conditions.

The government said it had also decided to give a bonus of 75 rupees per quintal for pulses over an above the price hike to narrow the gap between rising demand and faltering domestic supplies. It is hoping that the additional benefit would encourage farmers to increase acerage and invest in raising productivity of the the crop.

Rising prices of pulses and high imports has in recent weeks hit the headlines and made the government uncomfortable.

The Minimum Support Prices (MSPs) for all Rabi Crops of 2015-16 season to be marketed in 2016-17 have been increased and are given in table below:

Commodity MSP for 2014-15 season MSP for 2015-16 season

 

Increase in MSP over 2014-15 Bonus  *
  (Rs per  quintal) (Rs per  quintal) Absolute % (Rs per  quintal)
Wheat 1450 1525 75 5.2
Barley 1150 1225 75 6.5
Gram 3175 3425 250 7.9 75
Masur (Lentil) 3075 3325 250 8.1 75
Rapeseed/ Mustard 3100    3350 250 8.0
Safflower 3050 3300 250 8.2

Note * Bonus on Rabi pulses is payable over and above the MSP

The prices would be effective from the Rabi marketing season 2016-17. The higher MSPs would increase investment and production through assured remunerative prices to farmers.

 

 

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