CACP suggests Rs 50/quintal hike in paddy MSP

A government advisory body on crop pricing has recommended a modest increase of Rs 50 per quintal in the minimum support price for paddy farmers.
The Commission for Agricultural Costs and Prices (CACP) -- a statutory body that advises the government on the pricing policy for major farm produces -- has also suggested a hike of Rs 100 per quintal in the support price of ragi to Rs 1,650 and Rs 30 per quintal for groundnut MSP to Rs 4,030.
In its MSP proposals made to Agriculture Ministry for various kharif (summer-sown) crops for 2015-16, the paddy MSP has been suggested to be increased to Rs 1,410 a quintal.

MSP is the rate at which government buys the grain from farmers.
Paddy is the main crop grown in the kharif (summer) season. Sowing of kharif crops begins with the onset of South-West monsoon from June.
Rice production is pegged at 103.04 million tonnes in the ongoing 2014-15 season (July-June), as against the record 106.65 million tonnes in the previous year. An increased MSP may enthuse farmer for greater sowing of paddy.

"CACP has recommended a Rs 50 a quintal increase in the MSP of paddy for the 2015-16 kharif season. The Agriculture Ministry is in the process of seeking views from the state governments and other departments concerned," a senior ministry official told PTI.

After taking the feedback, a final proposal will be moved for the Cabinet's approval, the official added.
For the 2014-15 kharif season, the previous government had also raised the support price of paddy by Rs 50 per quintal to Rs 1,360 for common variety and to Rs 1,400 for 'A grade' variety paddy.