New Delhi, August 20
The Centre today announced an increase of Rs 100 (per quintal) in the minimum support price (MSP) of paddy for the 2009-10 fiscal. The increase, however, was quite low as compared to that sought by various states, including Rs 300/quintal by Punjab.

The increase — 11.76 per cent for common and 11.36 per cent for grade ‘A’ rice — has been denounced by various farmer bodies, including those in Punjab and Haryana, saying it was “no match to the increased production cost of the crop in view of the deficient rainfall”.

While the MSP for common paddy variety has been increased to Rs 950 from Rs 850 per quintal, for grade ‘A’ type it would be Rs 980, up from Rs 880 per quintal last year.

Notably, paddy growers had also been given an additional bonus of Rs 50 per quintal the previous year. A decision on support prices was taken during a Cabinet Committee on Economic Affairs meeting, chaired by Prime Minister Manmohan Singh.

Among pulses, the new MSP for arhar is Rs 2,300, a hike of Rs 300 (15 per cent). The MSP for moong has seen a hike of Rs 240 (9.52 per cent); it now stands at Rs 2,760 per quintal. Sesame MSP, too, has been increased by Rs 100 and will now be Rs 2,850 per quintal.

Other than these, there has been no change in the MSP of commodities like bajra (Rs 840/quintal), maize (Rs 840), ragi (Rs 915), urad (Rs 2,520), groundnut-in-shell (Rs 2,100), soyabean black (Rs 1,350) soyabean yellow (Rs 1,390), sunflower seed (Rs 2,215), nigerseed (Rs 2,405), cotton medium staple (Rs 2,500) and cotton long staple (Rs 3,000).

Aimed at supporting farmers and encouraging them to sell their produce to official agencies, the move, however, is expected to lead to higher prices for consumers, who are shelling out 30 to 40 per cent more for essential items.

While farmers have been demanding a MSP of at least Rs 1,500 per quintal for paddy, the government considers the increase “good enough” to take care of the expected shortfall in rice procurement due to monsoon failure. Punjab Deputy Chief Minister Sukhbir Singh Badal had, at the chief ministers’ conclave recently, sought a MSP hike of Rs 300 per quintal for paddy.