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The Commission for Agricultural Costs and Practices (CACP) has recommended moderate increase of 1-5% in minimum support prices (MSP) of agricultural commodities for ensuing Kharif season 2014-15.
These recommendations have been sent to the ministry of agriculture where the new cabinet formed post election is expected to take a final call.
According to officials, many of the commodities like pulses and oilseeds have witnessed sharp increase in prices the year before last that is 2012-13.
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Even if the global prices and demand came off in 2013-14 compared to the available stock in the country, the prices have to be maintained at MSP even if market prices fell.
Currently, for many items like groundnut, sunflower, tur, urad, government agencies are engaged in procurement at MSP even when the market prices of these crops are ruling below MSP.
The MSP for paddy has been recommended an increase in the range of 3-5% and the final MSP going by CACP recommendation is expected to hover in the range of around 1350-1380 per quintal as against RS 1310 pq.
A statusquo has been maintained in groundnut and very minimal increase of 1-3% has been suggested for MSP of pulses and edible oil seeds. MSP for commercial crops like sunflower and cotton are expected to go up by Rs 50-100 per quintal, cotton on the lower side.
Continuing with the police free trade, the price policy report has suggested for freeing trade in all commodities except for pulses and edible oil going by the domestic deficit in these items.
The Cabinet Committee on Economic Affairs (CCEA) has approved continuation of National food Security Mission during 12th Plan with an allocation of Rs 12,350 crores including Rs 150 crores for commercial crops. A target of additional food grain production of 25 million tonnes consisting of Rice – 10 million tonnes, Wheat – 8 million tonnes, Pulses – 4 million tonnes and Coarse Cereals – 3 million tonnes has been fixed by the end of 12thPlan (2016-17).
Coarse Cereals including maize and commercial crops based cropping systems (Cotton, jute and sugarcane) will be the part of NFSM in 12th Plan.
The new interventions included under NFSM during 2014-15 are cropping system approach, assistance for availing the services of custom hiring centers, support to institutions / organizations including NGOs for demonstration of crop production technologies.
There will be specific allocation for marketing support for Pulses and millets (incentive for insurance cover, Dal Mill and Millet processing unit and value chain integration of small farmers through formation of FPOs. An amount of Rs. 2,207.00 crores has been allocated under NFSM as budget estimate (BE) for such marketing support for the year 2014-15.
