CACP favours MSP hike for rabi pulses, oilseeds

Written by Press Trust of India | New Delhi | Updated: Sep 29 2012, 07:34am hrs
Except for wheat and barley, the Commission for Agricultural Costs and Prices (CACP) has recommended to the government hike in minimum support price for winter-sown pulses and oilseeds by up to R500 a quintal.

The agriculture ministry will move a cabinet note on this after seeking comments from the ministries concerned and the state governments.

A senior government official said the CACP has not recommended raising the minimum support price (MSP) of wheat and barley for the 2013-14 rabi marketing season (April- March) in view of excess supply in the country following record production last year.

It suggested keeping the MSP of wheat and barley unchanged at R1,285 per quintal and R980 per quintal, respectively, for the next year, he added.

The Commission recommended no increase in wheat MSP because wholesale price of the grain are currently ruling below support price at R1,160 per quintal, while the production cost was around R1,066 per quintal in 2012-13. A similar trend was seen in barley, the official explained.

However, the CACP has suggested the government to announce 10% bonus to wheat and barley farmers if exports are banned next year, the official said.

To boost production of pulses and oilseeds, the CACP has proposed increase in the MSP of gram by R200 to R3,000 a quintal and masur dal by R100 to R2,900 a quintal for 2012-13 rabi season.

Similarly for oilseeds, the Commission has recommended increase in the support price of mustard seed by R500 to R3,000 a quintal and safflower by R300 to R2,800 per quintal for the period under review.

The reasons given were that the cost of production of pulses and oilseeds has increased substantially over last few years and the increase in support price will encourage farmers to grow these crops, the official said.

While sowing in rabi (winter) season starts from October, the harvesting of crops is undertaken during April-March.

The government aims to achieve grain production of 130 million tonne during the 2012-13 rabi season. Of which, 86 million tonne would be wheat, 12.5 million tonne of pulses, and 15 million tonne of rice.