CACP suggests hike in paddy MSP by Rs 60/quintal, pulses by Rs 200

New Delhi: Government advisory body on crop pricing CACP has recommended an increase in minimum support price (MSP) of paddy by Rs 60 to Rs 1,470 per quintal and for pulses by Rs 200 for 2016-17 kharif season.

For 2015-16 kharif (summer) season, the government had fixed the MSP of common variety paddy at Rs 1,410 and grade A variety grain at Rs 1,450 per quintal.

MSP is the rate at which government buys the grain from farmers. Sowing of kharif crops will begin with the onset of the Southwest monsoon in June. Paddy is the main crop grown in the season.

The Commission for Agricultural Costs and Prices (CACP) has made recommendations for 14 crops including paddy, coarse cereals, pulses, oilseeds and cotton in a report for 2016-17 kharif crops submitted to the Agriculture Ministry.

According to sources, CACP has proposed an increase in the paddy MSP by Rs 60 per quintal to Rs 1,470 for common variety and to Rs 1,510 per quintal for grade A variety for 2016-17.

A modest increase in paddy MSP has been proposed in view of excess stock in government godowns, they added.

However, CACP has suggested a substantial hike of Rs 200 per quintal in the MSP of tur dal to Rs 4,625 considering high inflation in pulses because of shortfall in domestic production, the sources said.

The body has proposed a hike of Rs 150 per quintal each for moong and urad dal to Rs 4,800 and Rs 4,575, respectively. The ministry after seeking views of state governments will move the Cabinet note on MSP issue. Normally, the government accepts the CACP recommendations.

An increased MSP may enthuse farmers to grow more pulses this year and boost domestic output, which is crucial for controlling prices that are still ruling high at Rs 177 per kg in retail markets due to supply-demand mismatch.

Pulses output is estimated to be 17.33 million tonnes this year, marginally higher than the previous year's production of 17.15 million tonnes, but much below the record 19.25 million tonnes achieved in 2013-14 crop year.