New Delhi, June 25
The government today announced Rs 50 per quintal increase in the minimum support price (MSP) of paddy to Rs 1,360 to encourage farmers to cultivate rice, but said the decision would not have an impact on inflation.

The MSP of the common paddy was hiked by Rs 50 while that of the grade ‘A’ variety has been raised by Rs 55 to Rs 1,400 per quintal.

The Cabinet Committee on Economic Affairs (CCEA) today approved the MSPs of kharif crops for 2014-15. The increase has been as per the proposal forwarded by the Agriculture Ministry. The MSP of pulses was raised by up to Rs 100 per quintal.

When asked whether increase in paddy MSP will lead to rise in prices, Law and Telecom Minister Ravi Shankar Prasad said: “I do not think rise in the MSP is directly linked to inflation. We are taking several measures to control inflation.” “In view of possibility of below normal monsoon, the government has gotten into action and taken several steps to control prices. We have accepted the recommendation of the CACP in toto. We have given best possible deal to farmers,” the minister said.

Cotton MSP has been increased by Rs 50 per quintal to Rs 3,750 for medium staple and to Rs 4,050 for long staple. For pulses, the CCEA approved Rs 50 hike in the support price of ‘tur’ and ‘urad’ to Rs 4,350 a quintal each, while ‘moong’ MSP was raised by Rs 100 to Rs 4,600 a quintal.

Increase of Rs 50 in the MSP of sunflower seed to Rs 3,750 a quintal, besides Rs 100 hike in the MSP of sesamum and nigerseed at Rs 4,600 and Rs 3,600 per quintal were announced.