The Cabinet Committee on Economic Affairs on Wednesday increased the Minimum Support Price (MSP) of crops ranging from Rs.15 to Rs.275 for this year's kharif season.
The new support prices will be effective from October 1 this year.
While the cabinet raised the price of common rice by Rs.50 to Rs.1,410 per quintal, it hiked the price for hybrid and Maldandi variety of 'jowar' by Rs.40 a quintal. A quintal equals 100 kg.
A comparatively better hike, however, was on the pulses front. Both 'tur' (arhar) as well as 'urad' prices were raised by Rs.275 while that for 'moong' by Rs.250 per quintal.
Now, the MSP of both 'tur' and 'urad' will be Rs.4,625 per quintal while for 'moong' the MSP will be Rs.4,850 -- that is a farmer would get a minimum assured price of Rs.46.25 for his kg of 'tur' and 'urad' pulses, and Rs.48.50 for a kg of moong.
The government said 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 Commission for Agricultural Costs and Prices.
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MSPs of 'ragi' and sesamum were hiked by Rs.100 per quintal to Rs.1,650 and Rs.4,700 respectively.
Prices of both medium and long staple ranges of cotton have been increased by Rs.50 to Rs.3,800 and Rs.4,100 respectively.
Bajra and maize saw moderate increase in MSPs.
Interestingly, the MSP for black variety of soyabean oil remains unchanged at Rs.2,500.
The Centre said the increase was expected to send out a strong signal to farmers to increase acreage and invest for increase in productivity of pulses.
Under the MSP system, the Centre purchases the produce from farmers at the declared price, thereby preventing distress sale.
Due to lower procurement from the eastern region of the country, the cabinet directed for necessary arrangements to strengthen procurement of agricultural produce from that part of the country.