Paddy MSP raised 5% for 2013-14

The increase was approved by CCEA

The government on Thursday raised the minimum support price (MSP) for common grade paddy to Rs 1,310 a quintal for 2013-14 (July-June), a rise of Rs 60 a qtl.

This increase of 4.8 per cent was approved by the Cabinet Committee on Economic Affairs (CCEA). It is sharply lower than the 15.7 per cent rise given in 2012-13.

The procurement price for the grade-A variety was raised by five per cent to Rs 1,345 a qtl for 2013-14, compared to Rs 1,280 a qtl for the previous year. The rise had been 15.3 per cent for 2012-13. Sowing of paddy, the main kharif crop, begins with the onset of monsoon in June and harvesting starts in October.

Officials in the know said a decision to corporatise Delhi Milk Scheme, losing money for several years, was deferred by the CCEA and the department of agriculture was directed to formulate a fresh proposal.

In 2012, there was drought in four states, leading to a fall in foodgrain production by four million tonnes to a little over 255 mt. This year, the monsoon is expected to be normal.

The CCEA also approved a Rs 100 a qtl rise in the cotton MSP, to Rs 3,700 a qtl (medium staple) and Rs 4,000 a qtl (long staple).

In pulses, the MSP of tur has been raised by Rs 450 to Rs 4,300 a qtl and of moong by Rs 100 to Rs 4,500 a qtl. The ministry had recommended no change in the urad MSP at Rs 4,300 a qtl for this year.

In oilseeds, the CCEA approved a rise of Rs 300 in the MSP of soyabean (black) to Rs 2,500 a qtl and a Rs 320 rise for soyabean (yellow) to Rs 2,560 a qtl.

The MSP of sesamum stands increased by Rs 300 a qtl to Rs 4,500. The support prices of sunflower seed and niger seed (kala til) have been kept unchanged at Rs 3,700 a qtl and Rs 3,500 a qtl, respectively.