Govt hikes MSP for Kharif crops

New Delhi, July 28 | Updated: Jul 29 2006, 03:57am hrs
The Union Cabinet has increased the minimum support prices (MSP) of kharif crops for the year 2006-07.

While the price per quintal of paddy, jowar and bajra has been hiked marginally by Rs 10, the prices of pulses (moong and urad) have been hiked by Rs 110.

Based on the recommendations of the commission for agricultural costs & prices (CACP), the Cabinet Committee on Economic Affairs approved the new price policy for kharif crops for 2006-07 in a meeting on Thursday.

As per the new policy, the MSP for paddy would be Rs 580 per quintal as against Rs 570 per quintal last year, while that for grade A paddy would be Rs 610 against Rs 600, last year.

The MSP for coarse cereal jowar would be Rs 540 against Rs 525, last year while that of ragi could be Rs 525 against Rs 515 last year.

Briefing newspersons, I&B minister Priyaranjan Dasmunshi said the MSPs for both bajra, maize have been fixed at Rs 540. For urad and mung, the MSPs remain unchanged at Rs 1520/quintal, each.

MSP for groundnut also remains unchanged at Rs 1520, whereas that for soyabean yellow has been hiked by Rs 10 to Rs 1020/quintal.

Down With Prices
The MSP for paddy will be Rs 580 per quintal as against Rs 570 last year
The MSP for coarse cereal jowar will be Rs 540 against Rs 525, last year while that of ragi wil be Rs 525 against Rs 515 last year
The MSPs for bajra & maize have been fixed at Rs 540
As for cotton, the new MSPs are Rs 1770(medium staple) and Rs 1990 (long staple), a hike of Rs 10 each.

The Cabinet also cleared relief package for debt-trapped farmers in select districts and relaxation of quarantine, and sanitary and phytosanitary (SPS) specifications for wheat imports under Open General Licence by the private trade.

In other important decisions, the Cabinet cleared a purchase preference policy for 102 products of pharma PSEs, IDPL, HAL, Bengal Chemicals, Rajashthan Drugs and their subsidiaries. It also cleared an amendment to the Central Silk Board (CSB) Act.

A framework agreement with South Africa Customs Union has also been approved. The cabinet also gave its approval for a detailed framework for implementation of the National Rural Health Mission.

For the smooth closure of Bharat Gold Mines Limited, the government will float an open global tender inviting bids for purchase of BGMLs assets.