With food inflation still above the comfort zone, the Centre could evoke a nominal hike in the minimum support price (MSP) of major kharif crops like paddy.
However, sources said a big increase in minimum support price has been suggested for pulses. The MSP of tur dal is proposed to be hiked by Rs 500 per quintal to Rs 2,800 per quintal and that of moong dal by Rs 240 per quintal to Rs 3,000 per quintal.
Sources said that taking into consideration the recommendations of Commission for Agricultural Costs and Prices (CACP), the government has recommended Rs 50 per quintal increase in the MSP of paddy, which is excluding the additional bonus of Rs 50 per quintal announced by it in 2009-10.
If approved by the cabinet the minimum support price of common grade paddy would rise to Rs 1,000 per quintal and that of grade ?A? paddy would rise to Rs 1,030 per quintal. This is same as the final price, after addition of Rs 50 per quintal bonus that farmers got last year.
In 2009-10, the government increased the MSP of common grade of paddy to Rs 950 per quintal and that of grade ?A? paddy to Rs 980 per quintal.
Later, it also announced a Rs 50 per quintal an additional incentive bonus of Rs 50 per quintal over and above the MSP.
The MSP of maize is also expected to be raised by Rs 40 per quintal to Rs 880 per quintal from the current Rs 840 per quintal.
Meanwhile, farmers in many parts of the country have already started sowing kharif crops in anticipation of normal monsoon this year.
As per the latest data from the agricultural ministry, till May 28, rice has been planted in is down by around 6% to 337,000 hectares this kharif season from 361,000 hectares in the same period last year. Till Friday, oilseeds was sown in around 27,000 hectares, down 43% per cent compared to the same period last year. ?Oilseed sowing mainly of soyabean and groundnut will pick up pace once monsoon becomes active in central and western parts of the country,? an Indore-based edible oil trader said.
Area under sugarcane has increased by 5% to 4,285,000 hectares as compared to 4,075,000 hectares last year. The area sown under pulses has increased by 53% to 53,500 hectares so far this kharif season compared to 35,000 hectares in the year-ago period.
In oilseeds, the area sown under sunflower has remained stable at 1,000 hectares, that under groundnut has decreased by 25% to 7,500 hectares.
