India’s cabinet has agreed to hiked the minimum support price (MSP) of paddy by Rs 60 to Rs 1,470 per quintal for the 2016-17 kharif season, a government statement said.
It said the MSP for pulses was also increased substantially and a bonus amount of 425 rupees was also added to encourage farmers to grow more pulses so that India’s dependence on imports can be reduced.
MSP is the rate at which the government buys the grain from farmers. Sowing of kharif crops will begin with the start of the monsoon, and rice paddy is main crop of the season.
The statement said that the support price of paddy common variety was being raised to Rs 1,470 per quintal, while A grade variety paddy has been increased to Rs 1,510 per quintal.
The MSP for oilseeds has also been increased substantially. In case of cotton, there is a Rs 60 per quintal jump in MSP of medium staple cotton to Rs 3,860 for 2016-17 and for long staple cotton to Rs 4,160 per quintal.
The government has said it was bullish on the agriculture sector after anticipation of a good monsoon following two straight years of drought.
Details of the proposed hikes:
|
Commodity |
Variety |
MSP for 2015-16 Season |
MSP
Recom-mended for 2016-17 Season |
Increase
|
Bonus |
|
|
Absolute
|
% age |
|||||
| Rs/ Quintal | Rs/ Quintal | Rs/ Quintal | % | Rs/ Quintal | ||
| Paddy | Common | 1410 | 1470 | 60 | 4.3 | – |
| Grade A | 1450 | 1510 | 60 | 4.1 | – | |
| Jowar | Hybrid | 1570 | 1625 | 55 | 3.5 | – |
| Maldandi | 1590 | 1650 | 60 | 3.8 | – | |
| Bajra | – | 1275 | 1330 | 55 | 4.3 | – |
| Maize | – | 1325 | 1365 | 40 | 3.0 | – |
| Ragi | – | 1650 | 1725 | 75 | 4.5 | – |
| Tur (Arhar) | – | 4625
(includes Rs.200/- Bonus)
|
5050
(includes Rs.425/- Bonus) |
425 | 9.2 | 425 |
| Moong | – | 4850
(includes Rs.200/- Bonus)
|
5225
(includes Rs.425/- Bonus) |
375 | 7.7 | 425 |
| Urad | – | 4625
(includes Rs.200/- Bonus)
|
5000
(includes Rs.425/- Bonus) |
375 | 8.1 | 425 |
| Groundnut-in-shell | – | 4030 | 4220
(includes Rs.100/- Bonus) |
190 | 4.7 | 100 |
| Soyabean* | Yellow | 2600 | 2775
(includes Rs.100/-Bonus) |
175 | 6.7 | 100 |
| Sunflower Seed | – | 3800 | 3950
(includes Rs.100/-Bonus) |
150 | 3.9 | 100 |
| Nigerseed | – | 3650 | 3825
(includes Rs.100/-Bonus) |
175 | 4.8 | 100 |
| Sesamum | – | 4700 | 5000
(includes Rs.200/-Bonus) |
300 | 6.4 | 200 |
| Cotton | Medium Staple | 3800 | 3860 | 60 | 1.6 | – |
| Long Staple | 4100 | 4160 | 60 | 1.5 | – | |
