Govt support prices up for summer crops

Goes by CACP recommendations, rise lower than last year's; announcement needed now, says minister, with possibility of sub-par monsoon

The Union government on Wednesday announced an increase in the minimum support prices (MSP) of kharif crops — paddy, coarse cereals, paddy and cotton — for 2014-15 (July-June), amid forecasts of a sub-normal monsoon.

The rise was modest compared to what was given last year, while in line with recommendations of the Commission for Agricultural Costs and Prices (CACP). The prices, announced by the Cabinet Committee on Economic Affairs (CCEA), will be effective from October 1.

The MSP of paddy’s common grade variety was raised by Rs 50 a quintal to Rs 1,360 for 2014-15, a 3.8 per cent rise compared to Rs 1,310 a qtl in the previous year. In 2013-14, the rise was 4.8 per cent. It is similarly so for other crops, except jowar and sunflower seed.

Procurement prices of paddy’s grade ‘A’ variety was raised by Rs 55 to Rs 1,400 a qtl. Paddy is a major kharif crop, the sowing of which starts with the onset of monsoon in June.

Asked if the rise in paddy MSP would lead to a rise in prices, Law Minister Ravi Shankar Prasad told a press conference: “I do not think a rise in MSP is directly linked to inflation. We are taking several measures to control inflation.”

The MSP of pulses was increased by up to Rs 100 a qtl. CCEA approved a Rs 50 rise in the support price of tur and urad to Rs 4,350 a qtl each; moong's was raised by Rs 100 to Rs 4,600 a qtl.

The cotton MSP has been increased by Rs 50 a qtl to Rs 3,750 for medium staple and to Rs 4,050 for the long staple. In oilseeds, the government announced an increase of Rs 50 in the support price of sunflower seed to Rs 3,750 a qtl, and Rs 100 for sesamum and nigerseed at Rs 4,600 and Rs 3,600 a qtl, respectively. Also, a rise for jowar by Rs 30 to Rs 1,530 a qtl for the hybrid variety and Rs 1,550 a qtl for the ‘maldandi’ variety. Ragi’s MSP was raised by Rs 50 to Rs 1,550 a qtl.