The Hindu : CACP to revise MSP for rice

Online edition of India's National Newspaper
Friday, Aug 30, 2002

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National

CACP to revise MSP for rice

By Gargi Parsai

New Delhi Aug. 29. The Commission for Agricultural Costs and Prices (CACP) is likely to re-work the minimum support price (MSP) for paddy for the 2002-03 marketing season in view of the widespread drought in the country. It had initially recommended a freeze on the procurement price of the last season based on a normal monsoon, but now it is likely to revise it at the behest of the Agriculture Minister, Ajit Singh.

Although it is against the norm, Mr. Singh has asked the CACP to take another look at its recommendation in view of the overall increase in production costs.

The procurement price for kharif has not been announced so far and already there are demands for early declaration of the minimum support price for rabi.

The CACP had in May recommended freezing of the MSP for the forthcoming marketing season to last year's levels of Rs. 530 per quintal for common paddy and Rs. 560 per quintal for Grade `A' variety.

The Ministry had accepted the proposal, but before the monsoon failure in July, which affected the paddy crop in parts of Punjab, Haryana and western Uttar Pradesh with forecast of an estimated 10 to 15 per cent lower output.

The MSP for wheat and rice have been so high that the CACP had been recommending for the last two years, a freeze on it. However, for political considerations, the Government have not accepted the CACP suggestions and announced some enhancement every year.

This year coarse cereals, oilseeds and pulses have also been hit by drought in northeast and central India. Consequently, the input costs for these commodities have gone up. In places such as Rajasthan, farmers have had to go in for a second sowing of coarse cereals after the revival of monsoon earlier this month.

Sowing of paddy in Chattisgarh was also delayed and redone increasing the input costs such as seeds, fertilizer and labour.

Sources said even in assured irrigation States such as Punjab and Haryana, farmers have had to use diesel pumps additionally to more than double the irrigation to keep the standing crop alive. Punjab has received deficient rainfall in 14 of its 16 districts. Haryana, Chandigarh and Delhi have been deficient in 19 districts of a total of 21.

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