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LATEST NEWS UPDATES | ‘Diwali bonanza' to farmers, MSP up for rabi crops

‘Diwali bonanza' to farmers, MSP up for rabi crops

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published Published on Oct 27, 2011   modified Modified on Oct 27, 2011
-The Hindu
 
The Union government on Tuesday announced an increase of Rs. 115 in the minimum support price (MSP) of wheat, which has been set at Rs. 1,285 a quintal for the 2012-13 rabi marketing season. The MSP for the previous year was Rs. 1,170 including a bonus of Rs. 50.

Terming the increase a “Diwali bonanza to farmers,” Law Minister Salman Khursheed told journalists that the decision was taken at a meeting of the Cabinet Committee on Economic Affairs meeting here. The meeting, chaired by Prime Minister Manmohan Singh, also approved the Agriculture Ministry's proposal for an increase of up to Rs. 700 a quintal in the support prices of barley, gram, masur (lentil), rapeseed/mustard and safflower. The MSP of barley was raised by Rs. 200 to Rs. 980, while that of gram and masur was fixed at Rs. 2,800, marking an increase of Rs. 700 and Rs. 550 respectively over the previous year.

The MSP of rapeseed/mustard has been set at Rs. 2,500, an increase of Rs. 650, while the price of safflower has been raised by Rs. 700 and fixed at Rs. 2,500 a quintal.

Mr. Khursheed said the government had effected generous hikes in the MSP of rabi crops to offset the impact of higher wages and costs of fertilizer, diesel and electricity.

“Difficult balance”

The government had attempted a “difficult balance” in fixing the MSP of rabi crops in the wake of high food inflation, which stood at 10.6 per cent for the week ended October 8. “We cannot be completely blind to the fact that there is inflationary pressure which is a very serious concern for us,” the Minister said.

The Ministries of Food and Finance were, however, reportedly opposed to the steep hike in the MSP of rabi crops apprehending a consequent rise in retail prices.


The Hindu, 26 October, 2011, http://www.thehindu.com/todays-paper/tp-national/article2572074.ece


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