The government will soon decide on minimum support prices (MSPs) for kharif crops such as paddy and is also working on ways to contain the rise in prices of pulses by boosting supplies, Finance Minister Arun Jaitley said today.
"The government is going to take a decision on this and the process of consultation is going on. Soon it will go to the Cabinet," Jaitley told reporters here when asked about the MSP announcement.
Agriculture Minister Radha Mohan Singh had said yesterday that support prices for farmers would be announced in the next two weeks. Farmers have already started sowing paddy in the current Kharif season although monsoon is yet to hit the Kerala coast.
On rising pulses price, Jaitley said the Food Ministry is taking measures to boost supplies and contain price rise.
"At the moment there has been some impact as far as pulses are concerned. This could happen on account of various factors. And the Department of Food in the last few weeks has been holding measures to increase the supply of as far market is concerned so that sudden spurt in pulses itself could be contained," Jaitley said.
Inflation in pulses stood at 15.38 per cent in April, up from 13.22 per cent in March. The rate of price rise in Pulses has been in the double digit for four consecutive months.
The Centre fixes MSPs of various kharif and rabi crops every year based on the recommendations of Commission for Agricultural Costs & Prices (CACP).
Food Corporation of India (FCI), the nodal agency for procurement and distribution of foodgrains, procures wheat and rice from farmers at the MSP.
In other crops, the government intervenes when the market rates fall below MSP.
