Govt hikes minimum support price of pulses by Rs 425 per quintal

The government has increased the minimum support price (MSP) of pulses by Rs 425 to Rs 5,000-5,225 per quintal for the 2016-17 Kharif season, Zee Media Bureau reported on Wednesday. 

The Cabinet Committee on Economic Affairs (CCEA), chaired by the Prime Minister Narendra Modi, has given its approval for the hike in the MSPs for all Kharif crops of the 2016-17 season.

The government has also hiked the MSP of paddy crop by Rs 60 to Rs 1,470 per quintal for the 2016-17 Kharif season.

The government had fixed the MSP of common variety paddy crop at Rs 1,410 and grade A variety grain at Rs 1,450 per quintal for the 2015-16 Kharif (monsoon) season.  

MSP is the rate at which the government buys the grain from farmers. It is a price fixed by the Government of India to protect farmers against excessive fall in price during bumper production years. The government announces the price before the beginning of the sowing season which starts with the arrival of southwest monsoon this month. Paddy is the main crop grown in the season. 

The government has increased the support price of paddy common variety to Rs 1,470 per quintal, while A grade variety paddy has been increased to Rs 1,510 per quintal for 2016-17 Kharif season, the news report said citing a source. 

As far as pulses are concerned, the government has raised MSP rate significantly for the 2016-17 Kharif season in order to boost domestic production and reduce the country's dependence on imports.  

Moreover, in the case of cotton, the CCEA has given an approval of Rs 60 per quintal rise in MSP of medium staple cotton to Rs 3,860 for the 2016-17 Kharif season and for long staple cotton to Rs 4,160 per quintal.