The Cabinet Committee on Economic Affairs on Wednesday gave its approval for Minimum Support Price (MSP) for crops during this year's kharif season.
The MSPs are based on the recommendations of the Commission for Agricultural Costs and Prices (CACP) and taking into consideration production cost, aggregate demand-supply situation in the Indian economy, domestic and international prices and other factors.
However, in view of large surplus of cereals in contrast to huge deficit in pulses, the cabinet decided to give a bonus of Rs.200 per quintal for pulses over and above the recommendations of the CACP.
"This is expected to give a strong signal to farmers to increase acreage and invest for increased productivity of pulses," a statement from the CCEA said.
MSP for common rice has been fixed at Rs.1,410 per quintal while pulses like 'moong' and 'tur' have been priced at Rs.4,850 and Rs.4,525 per quintal, respectively.
The price band of Rs.1,570 and Rs.1,590 per quintal has been fixed for two varieties of 'jowar' while medium and long staple ranges of cotton has been priced at Rs.3,800 and Rs.4,100, respectively.
Under the MSP system, the Centre purchases the produce from farmers at the declared price, thereby preventing distress sale.