Govt hikes farm support prices for 2012-13

Govt has also raised its 2012-13 support price for soybean and corn by 33% and 20%, respectively

India has raised its support price to farmers for common rice to Rs 1,250  per 100 kilogram from Rs 1,080 last year, Home Minister P. Chidambaram told reporters on Thursday, as it seeks to protect its agriculture from global price swings.

India is a major producer and consumer of grains and the government sets minimum support prices (MSP) for crops to encourage its agriculture sector, which accounts for some 15% of the $2 trillion economy, and ensure supplies for its subsidy programmes aimed at feeding half a billion poor.

The government also raised its 2012-13 support price for soybean and corn by 33% and 20% to Rs 2,200 per 100 kg and Rs 1,175 per 100 kg respectively.

 

The cotton purchase price for the long staple variant has been raised by 18 percent to 3,900 rupees per 100 kg.