Major Jump in India's Rabi MSP

DELHI - Nov 16/16 - SNS -- Minimum Support Prices (MSP for the 2016-17 rabi or winter crops were boosted 14% for gram or desi chickpeas and 16% for masur or lentils, compared to increases between 8% and 9% for kharif or monsoon season pulses.

The decision by India's Cabinet Committee on Economic Affairs was based on recommendations of Commission for Agricultural Costs and Prices (CACP).

The commission considers the cost of production, overall demand-supply, domestic and international prices, inter-crop price parity, terms of trade between agricultural and non-agricultural sectors, the likely effect on the rest of the economy, and ensuring rational utilization of production resources like land and water.

However, the cabinet committee decided to provide a bonus of Rs.200 per quintal (100 kilograms) for gram, Rs 150 for masur/lentil and Rs 100 for both rapeseed/mustard and safflower.

In announcing the decision, the cabinet said it wanted to give farmers an incentive to close the gap between domestic demand and the supply of locally grown pulses and oilseeds in an effort to reduce imports.

More significantly, the government has designated the Food Corporation of India (FCI) as the central nodal agency for price support operations for cereals, pulses and oilseeds. Along with the National Agricultural Cooperative Marketing Federation of India Limited (NAFED), National Cooperative Consumers' Federation (NCCF), Central Warehousing Corporation (CWC) and Small Farmers Agri - Business Consortium (SFAC) it will buy pulses or oilseeds when prices paid to farmers fall below the MSP.