Date:27/09/2002 URL: http://www.thehindu.com/2002/09/27/stories/2002092705010100.htm

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No increase in MSP for paddy

By Our Special Correspondent

NEW DELHI SEPT. 26. Brushing aside demands for an increase in the minimum support price for paddy for the kharif season 2002-03, the Union Cabinet today decided to retain it at last year's level as recommended by the Commission for Agricultural Costs and Prices (CACP).

The Cabinet, which met here this evening, also decided to retain the MSP for the coarse cereals, tur (arahar), cotton and soyabean at last year levels.

The MSP of `moong' and `urad' have, however, been raised by Rs. 10 each a quintal from Rs. 1,320 to Rs. 1,330 a quintal, and that of groundnut-in-shell by Rs. 15 a quintal from Rs. 1,340a quintal to Rs. 1,355 a quintal.

Likewise, the MSP for sunflower seed has been raised by Rs. 10 a quintal, while that for sesamum has been hiked by Rs.50 a quintal and for nigerseed by Rs. 20 a quintal.

Announcing the Cabinet decision, the Government's spokesperson said the new rates were designed to encourage the farmers to diversify from the normal rice-wheat cropping system and go in for the cultivation of other crops.

They would also help the poor farmers in less-endowed regions as oilseeds and pulses are crops of rainfed areas.