Govt hikes pulses MSP sharply to boost output, check prices

The Centre raised the minimum support price for pulses by up to Rs 275/quintal

The Centre today sharply hiked the minimum support price (MSP) for pulses by up to Rs 275 per quintal for this year to boost domestic output and check price rise, while making a modest increase of Rs 50 in paddy MSP to Rs 1,410 per quintal.

The decision was taken by Cabinet Commitee on Economic Affairs (CCEA), headed by Prime Minister Narendra Modi.

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 has already started with the onset of the South-West monsoon in June.

"CCEA has given the approval for the MSP for kharif crops of 2015-16 season. The decision is based on recommendations of the Commission for Agricultural Costs and Prices (CACP)," an official statement said.

"The CACP being the expert body on crop pricing, its recommendations are generally accepted as such. However, in view of a large surplus of cereals in contrast to huge deficit of pulses, the Cabinet made an exception and decided to give a bonus of Rs 200 per quintal for pulses over and above the recommendations of the CACP," it said.

Briefing media, Agriculture Minister Radha Mohan Singh said after inclusion of bonus, the MSP of tur and urad has been fixed at Rs 4,625 per quintal each for 2015-16, which is higher by Rs 275 per quintal from the last year.

Similarly, the MSP of moong has been hiked by Rs 250 to Rs 4,850 per quintal for this year from Rs 4,600 per quintal in the 2014-15 kharif season.

"This (increase in pulses MSP) is expected to give a strong price signal to farmers to increase acreage and invest for increase in productivity of pulses," the statement said, adding that MSP would be effective from October 2015.

That apart, the Cabinet also directed that a credible procurement mechanism for pulses and oilseeds be put in place if the need arises.

"Last week, a decision to import pulses was taken. These measures are expected to complement efforts to keep a check on the price rise in pulses," the statement added.

Besides pulses, CEA has also approved the MSP of paddy by Rs 50 per quintal for common variety to Rs 1,410 per quintal and Grade A variety to Rs 1,450 per quintal for this year.

Among cash crops, the MSP of cotton has been raised by Rs 50 to Rs 4,100 per quintal for long staple and Rs 3,800 per quintal for medium staple cotton for 2015-16.