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July 20, 1999

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Centre raises support price of 14 commodities

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In a move likely to benefit thousands of farmers, the Centre today announced around ten per cent increase in Minimum Support Price of 14 commodities including paddy, cotton and pulses.

The increase ranges from Rs 25 to Rs 145 a quintal and was fixed slightly higher than the Agriculture Price Commission recommendations.

Explaining the reasons for announcement of higher support price, Information and Broadcasting Minister Pramod Mahajan told reporters the commission has recommended that a higher support price can be fixed for those states where the farmers were paying higher electricity charges.

However, the government took the view that it was not administratively possible to announce variable rates of a commodity. So the government announced uniform support price, Mahajan said.

Justifying the decision, he said the government has to announce kharif prices normally before the commencement of sowing to ensure better returns for the farmers.

Under the present circumstances, there was no option but to increase the prices, he added.

Replying to a question, the minister said the government had not got any clearance from the Election Commission to increase the MSP.

The paddy prices had been increased by Rs 50 a quintal, a hike of more than ten per cent. The common variety paddy price has been fixed at Rs 490 a quintal and Grade A price at Rs 520 a quintal as against the APC recommendations of Rs 465 and Rs 495 a quintal respectively.

Similarly, the Cabinet has also recommended increase in cotton support prices by Rs 25 more than the APC recommendations. Other commodities support prices were also improved by Rs 5 a quintal over than the APC recommendations.

Coarse grains -- jowar, bajra, maize and ragi -- support prices have been increased by Rs 25 quintal each at Rs 415 a quintal.

Pulses' prices (whole) have been hiked by more than 15 per cent. Arhar (tur), moong and urad prices have been fixed Rs 145 higher at Rs 1,105 respectively than the previous season. NAFED continues to be the operating agency for pulses.

Among oilseeds, groundnut (shell)'s MSP has been fixed at Rs 1,155 a quintal, Rs 115 more than the previous season. While soyabean yellow's MSP has been fixed at Rs 845, soyabean black support price has been fixed at Rs 755. MSP of both varieties of soyabean have been increased by Rs 50 a quintal.

Sunflower seed price was increased from Rs 1,060 to Rs 1,155 a quintal. Sesame seed support price has been fixed at Rs 1,205 a quintal as against Rs 1,060 in the previous season. Nigerseed support price was increased by Rs 65 at Rs 915 a quintal.

Cotton (F-414 / H-777 / J-34) support price has been fixed at Rs 1,575 a quintal and cotton H-4 variety pegged at Rs 1,775 a quintal.

UNI

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