The Cabinet Committee on Economic Affairs (CCEA) today approved an increase in the minimum support prices (MSPs) for Rabi crops of 2015-16 season to be marketed in 2016-17.
The decision was based on recommendations of the Commission for Agricultural Costs and Prices (CACP) for the Price Policy for Rabi Crops for the Marketing Season 2016-17.
CACP, which is an expert body, takes into account the cost of production, overall demand-supply, domestic and international prices, inter-crop price parity, terms of trade between agricultural and non-agricultural sectors, the likely effect of the Price Policy on the rest of economy, besides ensuring rational utilization of production resources like land and water, while recommending MSPs.
The CACP being the expert body, its recommendations are generally accepted as such. However, in view of the gap in the demand and domestic supply of pulses, the Cabinet has decided to give a bonus of Rs.75/- per quintal for rabi pulses over and above the recommendations of the CACP. This is expected to give a strong price signal to farmers to increase acreage and invest for increase in productivity of pulses.
According to the release, the MSP for wheat has been increased by Rs. 75 (5.2 percent) from Rs 1450 per quintal to Rs 1525 per quintal.
The MSP for barley has been increased by Rs 75 (6.5 percent) from Rs 1150 per quintal to Rs 1225 per quintal. In the case of gram, the MSP has gone up by Rs. 250 (7.9 percent) from Rs 3175 per quintal to Rs 3425 per quintal.
The MSP for masur (lentil) has been increased by Rs 250 (8.1percent) from Rs 3075 per quintal to Rs 3325 per quintal, while it has been raised by Rs 250 (8.0 percent) from Rs 3100 to Rs 3350 per quintal for rapeseed/mustard. The MSP for safflower has gone up by Rs 250 (8.2 percent) from Rs. 3050 to Rs 3300 per quintal, the release said.
The prices would be effective from the Rabi marketing season 2016-17. The higher MSPs would increase investment and production through assured remunerative prices to farmers.