To encourage cultivation of pulses, the Union government on Thursday increased the minimum support prices by up to 33 per cent, but did not extend the favour to other kharif crops.
The Cabinet Committee on Economic Affairs, chaired by Prime Minister Manmohan Singh, increased the minimum support price of arhar by Rs. 700 a quintal to Rs. 3,000, of moong by Rs. 410 to Rs. 3,170 and of urad by Rs. 380 to Rs. 2,900.
The objective is to stem the upward movement of the prices of pulses in the international market, driven by the demand (in India), which far exceeds production by more than 40 lakh tonnes. Against the production of 14.7 million tonnes during 2009-10, the requirement was estimated to be 18-19 million tonnes.
In a sign of the importance it attaches to arhar, the Centre increased the MSP, over and above what was recommended by the Commission for Agricultural Costs and Prices, by Rs. 200 a quintal not only because of high consumption but also as the open market price had shot up to almost Rs.100 a kg.
The government does not procure pulses from farmers, but intervenes in case prices fall below the MSP.
On the other hand, the MSP for paddy (common variety) has been fixed at Rs. 1,000 a quintal, and for grade A at Rs.1,030, an increase of Rs.50 over last year.
As of now, farmers do not stand to benefit from this decision, as the government announced a bonus of Rs. 50 a quintal last year, besides the MSP. Any decision on a bonus this year will have to wait till October, sources said.
As for oilseeds, the MSP for groundnut has been raised by Rs. 200 a quintal to Rs.2,300, for sunflower by Rs. 135 to Rs. 2,350 and for niger seed by Rs.45 to Rs. 2,450.
The minimum support price for soyabean (black), soyabean (yellow) and sesame has been raised by Rs. 50 to Rs.1,400, Rs.1,440 and Rs.2,900.
For jowar (hybrid), bajra and maize, the minimum support price has been raised by Rs. 40 and fixed at Rs. 880.
