The Hindu : Andhra Pradesh / Hyderabad News : Seed subsidy, MSP hike for red gram farmers

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Wednesday, Jul 08, 2009
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Andhra Pradesh

Andhra Pradesh - Hyderabad

Seed subsidy, MSP hike for red gram farmers

Special Correspondent

30,000 quintals of seed to be supplied at 50 p.c. subsidy

Additional Rs 1,000 per quintal of red gram to be paid above the MSP
About 15,000 quintals of red gram seed procured from other States

HYDERABAD: As a final answer to the shortage of red gram in the State, the government has decided to bring more area under this crop this year by supplying the required quantity of seed to farmers at half the cost.

It has also resolved to pay an additional Rs 1,000 per quintal on red gram (kandi pappu in Telugu) procurement over and above the minimum support price (MSP) of Rs 2,000 announced by the Union Government.

Acute shortage

The shortage is such that red gram is not available in adequate quantity even to the government for distribution to white cardholders at a subsidised price.

Sharing this information with the media after a meeting with Chief Minister Y. S. Rajasekhara Reddy here on Tuesday, Agriculture Minister N. Raghuveera Reddy said the scarcity was due to a steep hike in demand while the extent sown remained distressingly static.

With a view to increasing the extent under the crop in its traditional areas in Mahabubnagar, Ranga Reddy and other districts, 30,000 quintals of red gram seed would be supplied to farmers at 50 per cent subsidy. This would be more than double the quantity supplied last year (12,000 quintals).

Campaign soon

Mr Reddy said the government had already procured 15,000 quintals of red gram seed from other States, paying a high price of Rs 4,700 a quintal but the supply to the farmers would be made only for half of this amount--Rs 2,350 a quintal.

When the red gram production arrives in the market in December-January, the farmer would be paid Rs 3,000 a quintal on the procured quantity.

He said plans had also been finalised to undertake a campaign to motive farmers to take up groundnut, maize and cotton.

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