CCEA may approve MSP of paddy, other kharif crops tomorrow

The government is likely to approve tomorrow a proposal to increase the minimum support price (MSP) of paddy by Rs 60 to Rs 1,470 per quintal and for pulses by more than Rs 200 for 2016-17 kharif season.
The government had fixed the MSP of common variety paddy at Rs 1,410 and grade A variety grain at Rs 1,450 per quintal for 2015-16 kharif (summer) season.
MSP is the rate at which government buys the grain from farmers. Sowing of kharif crops will begin with the onset of southwest monsoon in June. Paddy is the main crop grown in the season.

"The Cabinet Committee on Economic Affairs (CCEA) meeting is scheduled for tomorrow. Agriculture Ministry's proposal on the 'Price Policy for Kharif crop for 2016-17 season' is listed on the agenda," a source said.
In the cabinet note, the ministry has proposed a substantial increase in the support price of pulses in order to boost domestic output.
It is believed that the ministry has proposed increase in pulses MSP over and above the recommendations made by Commission for Agricultural Costs and Prices (CACP), the source added.

According to sources, CACP has proposed an increase in the paddy MSP by Rs 60 per quintal to Rs 1,470 for common variety and to Rs 1,510 for grade A variety for 2016-17.

However, the CACP has suggested a substantial hike of Rs 200 per quintal in the MSP of tur dal to Rs 4,625 considering high inflation in pulses because of shortfall in domestic production. "But the ministry has proposed more than Rs 200 per quintal hike in MSP of tur dal," the source added.
The body has proposed a hike of Rs 150 per quintal each for moong and urad dal to Rs 4,800 and Rs 4,575, respectively.
In case of oilseeds, the CACP has proposed an increase in MSP of soyabean yellow by Rs 75 per quintal to Rs 2,675.

The body has proposed Rs 50 per quintal jump in the MSP of sunflower seed to Rs 3,850, Rs 90 per quintal increase in the support price of groundnut shell to Rs 4,120 and Rs 100 hike in sesamum seed MSP to Rs 4,800 for the 2016-17 kharif season.
In case of cotton, the CACP has suggested an increase of Rs 60 per quintal each to Rs 3,860 for small staple cotton and Rs 4,160 for long staple cotton for this year.