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The Commission for Agricultural Costs and Prices (CACP) has recommended a Rs 50 a quintal increase in the minimum support price (MSP) of common grade paddy to Rs 1,360 a quintal for the 2014-15 kharif season.
"The raise in the paddy MSP has been decided based on the current stock position and possible impact on food subsidy," an official said.
As on March 1, rice stocks in Food Corporation of India (FCI) godowns are estimated to be 18.8 million tonnes, against the requirement of 14.2 million tonnes.
The total food grain stocks in the central pool are estimated to be 39.72 million tonnes, as against a requirement of 21.20 million tonnes as on March 1, 2014.
The FCI has 70 million tonnes of storage capacity, which includes warehouses and godowns hired from state governments and private parties.
Officials said the CACP has also recommended no change in the MSP of soybean, groundnut and maize for the 2014-15 crop season. The current MSP of groundnut is Rs 4,000 a quintal, while that of soybean (black variety) is Rs 2,500 a quintal and that of the yellow variety is Rs 2,560 a quintal. The procurement price for maize is Rs 1,310 a quintal. But, it has favoured a Rs 50 to Rs 100 a quintal increase in the MSP of major pulses grown during the kharif season, a senior official said.
For tur, the CACP has recommended the MSP of Rs 4,350 a quintal for 2014-15 as against Rs 4,300 a quintal in 2013-14 and for moong, it has suggested the MSP of Rs 4,600 a quintal as against Rs 4,500 a quintal. Urad MSP has been recommended at Rs 4,350 a quintal, Rs 50 more from the last year.
Meanwhile, officials said for cotton, the CACP has recommended a Rs 50 a quintal increase in the MSP of medium staple cotton to Rs 3,750 as against Rs 3,700 a quintal in 2013-14, while that of long staple cotton has been recommended at Rs 4,050 a quintal for 2014-15 as against Rs 4,000 a quintal in 2013-14.
A final decision on the CACP's recommendations would be taken by the Union Cabinet. But with elections around the corner, a formal announcement could be withheld.
Sowing of kharif crops starts around June, with the onset of the summer monsoon, while the harvesting begins from October.
