MSPs raised 39-79% in 4 yrs

The government has raised the minimum support price (MSP) of crops in the range of 39-79 per cent in the last four years to increase remunerations for farmers and boost production for meeting the growing domestic demand.

The MSP of paddy, a staple diet for most Indians, has been raised by 49 per cent to Rs 880 a quintal for the grade A variety for 2008-09 from Rs 590, four years ago.

Between 1999-2000 and 2003-04, the MSP of paddy was raised by only Rs 60 a quintal and that of wheat by Rs 50 a quintal.

“The country achieved record foodgrains production in 2007-08 crop year and higher MSP has played an important role in this,” a senior government official said.

The increase in MSP has prompted farmers to sow paddy in 12 lakh hectares more this year at 379.7 lakh hectares, he added.

Similarly, the wheat MSP has been fixed at Rs 1,000, up 56 per cent from Rs 640 in 2004-05, which enthused farmers to increase the area that resulted in higher production. India achieved record wheat output of 78.4 million tonnes in 2007-08.

Maize MSP has been increased by 60 per cent since 2004-05 to Rs 840. The maize production, too, is estimated at record 19.31 million tonnes in 2007-08.

The rise in the MSP of moong and urad by 79 per cent to Rs 2,520 has been the highest among the crops in the last four years. According to the government estimate, the output of pulses may breach the 15-million tonne mark in 2007-08.

In tune with the rise in other crops, the MSPs for soyabean (yellow) and groundnut have been increased by 39 per cent and 40 per cent respectively, since 2004-05. The MSP of soyabean stands at Rs 1,390 whereas that of groundnut at Rs 2,100.

The oilseeds production in the country, including soyabean and groundnut, is projected to touch 28.82 million tonnes in 2007-08.

The agriculture sector accounts for 18 per cent of the overall gross domestic product of the country and about 60 per cent of the total population still depends upon it for livelihood. The sector has grown on an average of 4.7 per cent in the last three years.