The government today hiked the minimum support price (MSP) of paddy by Rs 60 to Rs 1,470 per quintal for the 2016-17 kharif season.
A decision in this regard was taken in the meeting of the Cabinet Committee of Economic Affairs (CCEA).
The Cabinet also approved a substantial increase in the MSP of pulses for the 2016-17 kharif season.
The government had fixed the MSP of common variety paddy at Rs 1,410 and grade A variety grain at Rs 1,450 per quintal for 2015-16 kharif (summer) season.
MSP is the rate at which the government buys the grain from farmers. Sowing of kharif crops will begin with the onset of southwest monsoon this month. Paddy is the main crop grown in the season.
"CCEA has approved Rs 60 per quintal increase in the MSP of paddy for the 2016-17 kharif season," a source said.
The support price of paddy common variety has been raised to Rs 1,470 per quintal, while A grade variety paddy has been increased to Rs 1,510 per quintal for 2016-17, the source said.
The government has increased paddy MSP marginally as the country has sufficient stocks and the price increase covers the cost of production.
Barring pulses and oilseeds, the CCEA has approved the MSP of other crops as per the recommendation of government's advisory body on farm pricing CACP.
In case of pulses, the sources said the government has hiked MSP substantially for 2016-17 kharif season to boost domestic production and reduce the country's dependence on imports.
Sources said the CCEA has approved more than Rs 400 per quintal increase including bonus to enthuse farmers to grow more pulses this year.
Similarly in oilseeds, the sources said the MSP has been increases substantially.
In case of cotton, the CCEA has approved Rs 60 per quintal jump in MSP of medium staple cotton to Rs 3,860 for 2016-17 and for long staple cotton to Rs 4,160 per quintal.
The government is bullish on farm sector growth in 2016-17 fiscal on hopes of better monsoon after two consecutive drought years.
