CACP favours MSP hike for rabi pulses, oilseeds but not wheat

Says the cost of production of pulses and oilseeds has increased substantially over last few years

Except for wheat and barley, the Commission for Agricultural Costs and Prices (CACP) has recommended the government to hike the minimum support price for winter-sown pulses and oilseeds by up to Rs 500 a quintal.

The Agriculture Ministry will move a cabinet note on this after seeking comments from the ministries concerned and the state governments.

A senior government official said the CACP has not recommended raising the minimum support price (MSP) of wheat and barley for the 2013-14 rabi marketing season (April- March) in view of excess supply in the country, following record production last year.

It suggested keeping the MSP of wheat and barley unchanged at Rs 1,285 per quintal and Rs 980 per quintal, respectively, for the next year, he added.

The Commission recommended no increase in wheat MSP because wholesale prices of the grain are currently ruling below support price at Rs 1,160 per quintal. The production cost is around Rs 1,066 per quintal in 2012-13.

A similar trend was seen in barley, the official explained.

"However, the CACP has suggested the government to announce a 10% bonus for wheat and barley farmers if exports are banned next year," the official said.

To boost production of pulses and oilseeds, the CACP has proposed increase in the MSP of gram by Rs 200 to Rs 3,000 a quintal and masur dal by Rs 100 to Rs 2,900 a quintal for 2012-13 rabi season.

Similarly for oilseeds, the Commission has recommended increase in the support price of mustard seed by Rs 500 to Rs 3,000 a quintal and safflower by Rs 300 to Rs 2,800 per quintal for the period under review.

The reasons given were that the cost of production of pulses and oilseeds has increased substantially over last few years and the increase in support price will encourage farmers to grow these crops, the official said.

While sowing in rabi (winter) season starts from October, the harvesting of crops is undertaken during April-March.

The government aims to achieve foodgrains production of 130 million tonne during the 2012-13 rabi season. Of this, 86 million tonne would be wheat, 12.5 million tonne pulses, and 15 million tonne would be rice.