By IANS
New Delhi : The central government Thursday decided to increase by Rs 50 a quintal the minimum support price for paddy to help farmers during the current kharif season.
The increase is over and above the bonus of Rs.50 announced earlier, Information and Broadcasting Minister Priya Ranjan Dasmunsi told reporters after a meeting of the cabinet presided over by Prime Minister Manmohan Singh.
The minimum support price determines the remuneration central agencies like the Food Corporation of India (FCI) give farmers for their produce.
“The benefit of grant of incentive bonus on paddy in addition to the minimum support price for the kharif season of 2007-08 will encourage farmers to grow more paddy and contribute more to the procurement for central pool,” Dasmunsi said.
Opposition parties and the governments of the rice growing states had been demanding an immediate hike in paddy procurement prices, saying farmers were distressed at not being able to get remunerative prices.
The opposition also wanted the hike to bring paddy on par with wheat which gets a minimum support price of Rs.1,000 per quintal.
Early last month, the cabinet had cleared a bonus of Rs.50 per quintal, bringing the paddy prices to Rs.695 per quintal for common variety and Rs.725 per quintal for what is called ‘Grade A’ variety.