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)|
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.