Govt. hikes MSP for pulses to boost production

The Dollar Business Bureau

The government on Wednesday hiked the minimum support price (MSP) of pulses by up to Rs. 425 per quintal for the year 2016-17 to boost domestic production and check price rise.
It has also announced a bonus on the cultivation of pulses and oilseeds, payable over and above the agreed MSP, in order to incentivise the cultivation of these items.
The decision to raise MSP was taken after Commission for Agricultural Costs and Prices (CACP), which considers the production cost, domestic and international prices, overall demand and supply, inter-crop price parity, effect of the price policy on economy, and terms of trade between agricultural and non-agricultural sectors, came out with the MSP recommendation for kharif crops 2016-17.
Other factors, including rational utilisation of production resources such as land and water, are also considered before accepting the MSP.
The government made a slight increase of Rs.60 in paddy MSP to Rs.1,470 per quintal.
Among other crops, the commission has raised the MSP of ragi by Rs.75 per quintal to Rs.1,725 per quintal, jowar by Rs.60 per quintal to Rs 1,650, bajra by Rs.55 per quintal to Rs 1,330 and maize by Rs.40 per quintal to Rs 1,365 for the year 2016-17.
The MSP is the fixed rate, at which the government purchases foodgrains from farmers.
The government has taken plenty of measures such as new crop insurance scheme, irrigation fund, storage capacity expansion, unified agriculture product markets and rural infrastructure development to help farmers increase their income levels.