India raises minimum support price for paddy and pulses

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

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